Overall trade deficit soars by 81pc in first five months

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Siddique Islam
The country's overall trade deficit soared by nearly 81 per cent in the first five months of the fiscal that has pushed the current account balance to a negative $153 million, officials said.
The overall trade deficit rose to $2.099 billion in July-November period of fiscal 2007-08, from $1.162 billion during the corresponding period of the previous fiscal registering an increase of 80.64 per cent.
The deficit escalated mainly due to higher import of food grain and gasoline.
During the period, export earnings stood at $5.107 billion against the import payments of $7.206, according to the central bank statistics.
The trade deficit pulled the current account balance to a negative $153 million at the end of November 2007 although the country's overall balance of payments continued to maintain a surplus position.
"Despite larger current transfers of $3.089 billion, current account balance recorded a deficit of $153 million during July-November, 2007 against the surplus of $265 million during July-November, 2006 due mainly to larger deficits in balance of trade," the BB said in its Major Economic Indicators: Monthly Update for February, 2008, released Tuesday.
The overall balance, however, recorded a surplus of $140 million at the end of November last as against a surplus of $157 million during the same time of the previous fiscal due mainly to a surplus of $368 million in the financial account, according to the Update.
On the other hand, the flow of net foreign direct investment (FDI) came down to $329 million in the period under review from $343 million of the corresponding period of the previous fiscal.