KARACHI - Pakistans trade deficit has sharply fallen by 38.45 per cent to $2.194 billion during the first two months of current fiscal year 2009-10. However, during the equivalent period of last year, the trade deficit was limited to 3.564 billion dollars. This improvement in the YoY growth of trade account is ascribed to moderate compression in imports nevertheless, exports continued to experience setback in growth on account of global recession and slowdown in domestic economic activity. The growth in exports was decelerated by 13.78 per cent while imports recorded 26.32 per cent in July-August 2009. Pakistans total exports amounted to $2.969 billion in July-August FY10 from $3.443billion during the corresponding month of last year while imports stood at $5.163 billion as against $7 billion of previous year. The Federal Bureau of Statistics (FBS) break-up on balance of trade position for the months of July, August 2009, released by Federal Bureau of Statistics (FBS) on Friday unveiled that the month-on-month based growth in trade deficit witnessed a sharp downward trend as it slashed by 44 per cent, narrowing to $1.043 billion in the month of August this year from $1.895 billion of previous month of prevailing fiscal year. According to FBS, the over all exports fell by 5.36 per cent to $1.480 billion during August 2009 from $1.564 billion in the month of August last year. Whereas Pakistan had spent $2.524 billion during July-August, 2009 on the import of different commodities as compared to $3.459 billion of the last month of current financial year. Foreign trade experts sees this trend could be accompanied with a sustained decline in traditional exports such as textiles which has been outweighing the pick up in non-traditional exports; whereas drop in lower oil bill and significantly lower imports of telecom equipment, motor vehicles and parts and other goods may also be contributed towards this slowdown.