KARACHI: A sharp increase in trade deficit of as much as $32 billion threatens the balance of payments as the financial year is coming to a close and final payments are bound to be cleared before June 30, according to industry sources. However, some financial experts said the “managed exchange rate” has produced negative results as it made the dollar cheaper, allowing importers of luxury items like costly new vehicles to exceed all limits. The experts said that unlike Pakistan, the Indian rupee sharply fell by 10 per cent over the last 12 months and is still falling.