Trade deficit projected at $15.9 billion

Pakistan's trade deficit has been projected at $15.9 billion in 2008-09 with estimated exports growing by 15 percent to $21.6 billion while imports by 12 percent to $37.6 billion. The export estimates in 2007-08 stand at $18.8 billion. These projections were presented to the Annual Plan Coordination Committee, which met here on Friday.

The final estimates will be prepared by the commerce ministry in the coming Trade Policy. Imports will be increased by 12 percent in the next fiscal year due to higher volume of food items, oil, edible oil and fertilisers. As a result, the trade account is projected to be in deficit by $15.9 billion in 2008-09 or 8.3 percent of GDP.

Invisible account: Prospects for the invisible balance will continue to be governed mainly by the behaviour of the worker's remittances. For 2008-09, remittances have been projected at $6.9 billion against $6.5 billion estimated for 2007-08. Allowing for other invisible receipts and payments, the surplus on invisible account is anticipated at $3.4 billion against a surplus of $1.7 billion estimated for 2007-08.

Current account balance: With a deficit of $15.9 billion on the trade account and a surplus of $3.4 billion on the invisible account, the current account deficit is targeted at around $12.5 billion (6.5 percent of GDP) in 2008-09 against a deficit of $13.0 billion (7.6 percent of GDP) in 2007-08.