ISLAMABAD, Jan 10: The country’s trade deficit hit $9.55 billion during the first half of the current financial year (July-Dec 2008). The figure for the corresponding period during the last financial year was $8.29 billion — an increase of 15.27 per cent.

The import bill reached $19.132 billion, as against $16.95 billion of the same period last year. Exports rose to $9.57 billion, as against $8.65 billion during the first half of 2007-08.

The figures released by the Federal Bureau of Statistics on Saturday showed that imports declined by 9.45 per cent to $2.12 billion in December, as against $2.34 billion over the same month last year.

Exports fell by 0.70 per cent to $1.31 billion in December from $1.32 billion of the same month of 2007.

A slowdown in imports was seen during the past three months, particularly in December, due to a substantial decline in international prices of edible oil, crude oil, steel products and some food items.

The government has also taken several measures to contain imports of some commodities to reduce pressure on foreign exchange reserves. The reserves edged up to $10.003 billion by Jan 3 from less than $9 billion in November.

A senior official in the finance ministry told Dawn that the reduction in imports would be more visible in the next few months.

Exports proceeds declined because the textile and clothing sector, the largest contributor to the country’s foreign trade, showed a negative growth during the first half of the year.