Trade deficit widens to $20.746 billion

According to experts, the high international oil prices (fuel/edible oil) and sharp increase in the imports of different groups have consumed a big chunk of additional amount of foreign exchange, causing extra burden on the national reserves which resulted ever increasing trade deficit. The analysts were of the view that the energy crisis has appeared as death warrant for the economy which is disaster for the industry.

Official data showed that a sharp increase of $23 million dollars had been achieved in exports of the country as total exports amounted to $19.223 billion dollars over target of $19.200 billion dollars in outgoing fiscal 2007-08.

Analysts said the over $20 billion dollars trade deficit was the major reason behind fast growing current account deficit which ballooned to $14.016 billion dollars during the outgoing fiscal year 2008 against $6.878 billion of FY07, leading to erosion in the foreign exchange reserves of the country while adding worries to the country’s economic managers, who were combating other challenges like highest ever trade deficit and inflation on other side.