Experts said that the oil prices would significantly reduce the country's oil bill and ultimately rate of import growth would decline but the poor export growth could further widen the trade deficit.
On monthly basis, the import of goods increased by 5.22pc to $2.443 billion in September 2006 as against $2.321bn during the same month last year.
However, the export of commodities declined by 4.53 per cent to $1.416 billion during Sept 2006 as against $1.483bn over the same month last year.
Trade analysts said that the decline in export was eminent because of more than eight per cent decline in export of all textile products including readymade garments.
Moreover, the traditional sectors like footwear, surgical, sports and leather were also witnessing negative growth in export from the start of the current fiscal year.
This negative growth was despite the fact that government had exempted all these sectors from duties and taxes besides six per cent subsidy for the textile sector and a package of Rs25 billion announced recently.
A major question is whether the government policy of subsidies was misdirected or the manufacturers were unable to produce competitive products to compete with other products in international market.
The government has projected the trade deficit at $9.4bn for 2006-07, while the export and import target is $18.6 billion and $28 billion respectively for the current year.
When contacted Dr Ashfaq Hassan Khan, Adviser to Finance Ministry said that this year the trade deficit would be down as percentage of the GDP.
He said that trade deficit would be curtailed in the months ahead as major decrease in oil prices occurred in international market.
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