Exports decline by 6.5 per cent in September

The upward trends in exports slowed down in September 2011, as the exports declined by 6.5 per cent to $ 1.83 billion as compared to $1.96 billion in August 2011. According to trade data released by the Federal Bureau of Statistics (FBS) on Monday, Pakistan’s trade deficit increased by 18.6 per cent to $6.003 billion during the first quarter of the current fiscal year against deficit of $5.058 billion recorded during the same period last fiscal year. Meanwhile, the imports also surged by over 23 per cent and recorded at $11.11 billion in July-September 2011 against the $9.02 billion of July-September 2010 period. Therefore the trade deficit has widened to $5.114 billion during the first quarter of the ongoing financial year. Trade analysts believed that the country’s trade deficit might increase, as the imports of the country might surge in the coming months due to the soaring oil prices in international market. Contrary to imports, the country’s exports witnessed a jolt due to the floods in Sindh, which destroyed 80 per cent of cash crops. The flood in Sindh province has badly destroyed the cotton crop, which might result in affecting the overall export target of the country as the country is heavily dependant on cotton exports. According to the estimates of All Pakistan Textile Mills Association (APTMA), the rains have destroyed approximately 1.5 to 2 million bales leaving a shortfall of about 1.5 million bales in comparison to last year; therefore, the country will not be able to export its cotton. According to the data, the overall imports showed a decline of 4.83 per cent in September 2011 against August 2011, as the country imported goods worth $3.62 billion during the last month as compared to $3.80 billion in August 2011. Therefore, the country’s trade deficit was exacerbated by more than three per cent in September 2011 against August 2011. The country’s trade deficit was recorded at $1.78 billion in September 2011 against $1.18 billion in August 2011. However exports had surged by 15.25 per cent in September 2011 if compared to the figures of September 2010 and imports had also increased by 30.24 per cent in the said period.