Exports decline 3.24pc in Oct
Exports decline 3.24pc in Oct
By Mubarak Zeb Khan
ISLAMABAD, Nov 14: Exports of merchandise declined by 3.24 per cent during the first month (October 2006) of the second quarter of the fiscal year 2006-07, over the same month last year.
Official data released here on Tuesday by the Federal Bureau of Statistics (FBS) indicated that exports had started declining from the first quarter (July-Oct 2006) of the current fiscal year. This means that exports dipped by 3.85 per cent in July followed by 6.6 per cent in August and 4.53 per cent in September.
Commerce Minister Humayun Akhtar Khan told Dawn that the decrease in export was due to subsidies given to products of Pakistan’s competitors -- India, Bangladesh, China, etc.
Mr Khan said his ministry was conducting the impact analysis product-wise and region-wise to identify the reasons for decline in export of products, particularly the textile items.
The data showed that export in absolute term during July-October 2006 rose by just 1.34 per cent to $5.551 billion as against $5.478 billion last year. The export target is $18.6 billion for the fiscal year 2006-07.
The import declined by 8.33 per cent to $2.131 billion during the first month of the second quarter as against $2.325 billion last year. This decline in imports resulted in lowering the rate of trade deficit by 15 per cent to $849.604 million in October 2006 as against $1 billion in the same month last year.
However, trade deficit of first four months (July-Oct 2006) reached $4.008 billion as against $3.398 billion, an increase of 17.98 per cent. The figure showed that trade deficit was high mainly because of low export growth as the rate of import growth last year was higher than this year.
The widening trade deficit would be more worrisome for the government as it could face serious problems to meet the current account deficit. Last year trade deficit was over $12 billion, which put immense pressure on current account balance but the balance was met with higher remittances by overseas Pakistanis, foreign direct investment and privatisation proceeds.
In reply to a query, the commerce minister said the decline in imports was mainly due to less industrial undertaking. He said that during the past years, credits had helped industries to import machinery and other accessories for expanding their production in the country.
Analysts said imports were declining due to massive reduction in import of machinery by the textile sector, decline in world oil prices and to some extent a fall in raw materials for industrial undertaking.
ISLAMABAD, Nov 14: Exports of merchandise declined by 3.24 per cent during the first month (October 2006) of the second quarter of the fiscal year 2006-07, over the same month last year.
Official data released here on Tuesday by the Federal Bureau of Statistics (FBS) indicated that exports had started declining from the first quarter (July-Oct 2006) of the current fiscal year. This means that exports dipped by 3.85 per cent in July followed by 6.6 per cent in August and 4.53 per cent in September.
Commerce Minister Humayun Akhtar Khan told Dawn that the decrease in export was due to subsidies given to products of Pakistan’s competitors -- India, Bangladesh, China, etc.
Mr Khan said his ministry was conducting the impact analysis product-wise and region-wise to identify the reasons for decline in export of products, particularly the textile items.
The data showed that export in absolute term during July-October 2006 rose by just 1.34 per cent to $5.551 billion as against $5.478 billion last year. The export target is $18.6 billion for the fiscal year 2006-07.
The import declined by 8.33 per cent to $2.131 billion during the first month of the second quarter as against $2.325 billion last year. This decline in imports resulted in lowering the rate of trade deficit by 15 per cent to $849.604 million in October 2006 as against $1 billion in the same month last year.
However, trade deficit of first four months (July-Oct 2006) reached $4.008 billion as against $3.398 billion, an increase of 17.98 per cent. The figure showed that trade deficit was high mainly because of low export growth as the rate of import growth last year was higher than this year.
The widening trade deficit would be more worrisome for the government as it could face serious problems to meet the current account deficit. Last year trade deficit was over $12 billion, which put immense pressure on current account balance but the balance was met with higher remittances by overseas Pakistanis, foreign direct investment and privatisation proceeds.
In reply to a query, the commerce minister said the decline in imports was mainly due to less industrial undertaking. He said that during the past years, credits had helped industries to import machinery and other accessories for expanding their production in the country.
Analysts said imports were declining due to massive reduction in import of machinery by the textile sector, decline in world oil prices and to some extent a fall in raw materials for industrial undertaking.
posted by India News Watch at 5:47 PM
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