12/09/2011 (Daily Times) - The country’s exports and imports witnessed a significant imbalance as trade deficit widened by 19.54 percent in the first two months of the financial year 2011-12, Federal Board of Statistics (FBS) reported on Saturday.

The statistics showed the ballooning imports bill of the country that was recorded at $ 7.495 billion in July and August compared to relatively higher exports of $4.167 billion in the same period.

In the previous fiscal year, the imports were stood at $6.249 billion in July and August 2010, whereas exports were seen to stand at $3.465 billion in the same months. The imports witnessed growth of 19.94 percent in July-August, whereas the exports registered growth of 20.26 percent in the same period translating into high trade deficit.

The trade imbalance was widened in August as the imports of different commodities and items were seen high and exports were down significantly.

In August 2011, the imports were increased to $3.806 billion versus imports of July that stood at $3.689 billion, up $117 million or 3.17 percent. On the other hand, the exports decreased to $2.203 billion compared to $1.964 billion in August, down by 239 million or 10.85 percent. Analysts said the high imports of petroleum products, food items and machinery had spelt into huge expenses of the country however its earnings were dropped on decreasing value of exportable commodities and products. They added the trade was fluctuated significantly in August because of the changing demands, domestic consumption and production patterns.

The high import bill reflect the purchase of petroleum products and crude oil that were carried out in surging volume to meet the local consumption, InvestCap Head of Research Khurram Schehzad said. The prices of petroleum products and crude oil were comparatively lower from past months but the volume was increased in the month of August, he added and said the food items particularly palm oil imports were increased for meeting high domestic consumption in the month of Ramazan. He added the values of cotton have decreased significantly in August that caused decline in export earnings significantly.