Trade deficit jumps 18% to $7.1b

The Express Tribune reported that, based on Pakistan Bureau of Statistics figures, the trade gap widened 18% to $7.1 billion over July and August. Imports rose 13% to $12.6 billion, while exports climbed only 7% to $5.5 billion, expanding at about half the pace of imports.

Exports had touched nearly $3 billion in July but slipped back to around $2.5 billion in August, which the bureau described as its traditional monthly level. Against July, shipments fell 15% and imports dropped more than 17% to nearly $5.7 billion, narrowing the monthly deficit by $777 million.

Exporters blame a strengthening rupee, even though the report notes an 8% depreciation of the rupee on a Real Effective Exchange Rate basis. The government targets exports of $32.5 billion for the current year against projected imports of $70 billion, with remittances and new borrowing covering the difference.