ISLAMABAD, Oct 19: The country’s trade deficit rose by 188 per cent to $2.4 billion during the first quarter (July-September) of the current fiscal year compared to $826 million the same period last year.

Official figures released on Wednesday by Federal Bureau of Statistics (FBS) showed that during the September 2005 the trade deficit increased by 212.7 per cent to $826.51 million compared to $264.3 million the same month last year.

The trade gap would widen in the months to come following the massive demand for import of tents, tarpaulin, blankets and other products for the earthquake affected people. It would be coupled by massive imports of urea, vegetables, wheat and sugar.

The statistics, however, showed that the trade deficit fell to a provisional $823.04 million in September 2005, from $826.51 million in August 2005.

Further break up showed that exports in the first quarter (July-Sept) were up 20 per cent to $4.2 billion from $3.5 billion in the same period last year.

On monthly basis, the exports increased by 35 per cent to a provisional $1.5 billion in September 2005 from $1.1 billion during the same month of last year. The unexpected growth in export during September 2005 was due to the fact that the government had asked the exporters to dispose of all the duty-paid stock before September 30.

Beyond this deadline the exporters could not claim refund/rebate on proceeds of their exports as the government had zero-rated all textile and four other sector during the budget of 2005-06.

The import bill rose by 52 per cent to $6.6 billion during the July-Sept period this year from $4.3 billion the same period last year.

The imports of goods increased by 67 per cent to a provisional $2.3 billion in September 2005 compared to $1.377 billion during the same month last year.

The main imports were petroleum products, crude oil, machinery and chemicals. The main exports were cotton yarn, cotton fabrics and rice.