Country spends $4.6b on importing food commodities in seven months

ISLAMABAD-Pakistan has spent $4.6 billion on importing food commodities in seven months (July to January) of the current fiscal year (FY2020-21) to bridge the local shortages in the country.

The country’s oil import has surged by 51.9 per cent to $4.6 billion in July to January period of FY2020-21 as compared to $3.05 billion in corresponding period of the previous year, according to the latest data of Pakistan Bureau of Statistics (PBS). Pakistan’s food import has increased by over 50 per cent in the month of January. The government allowed import of wheat and sugar to bridge the local shortages. The import of almost all essential food products – spices, palm oil, tea, milk etc – witnessed growth during the period.

The breakup of $4.6 billion showed that country has imported wheat worth $794.6 million in seven months of the ongoing financial year, which is 100 per cent higher than the corresponding period of previous year. The government has imported palm oil worth $1.37 billion in July to January period of FY2020-21 as compared to $1 billion in the same period of last year, showing an increase of 36.59 per cent. Sugar import has cost $126.8 million to the national kitty. Meanwhile, the government has imported different pulses worth $330 million, milk, cream & milk food for infants $107.5 million and tea import cost $336.1 million in July to January period of the present financial year.  According to the PBS data, Pakistan’s oil import has declined by 20.9 per cent in July to January period of the current fiscal year. The country’s oil imports were recorded at $5.6 billion in seven months of 2020-21 as compared to $7.13 billion in corresponding period of the last year, showing decline of 20.9 per cent. Meanwhile, the oil import bill has declined by over 12.13 per cent to $869 million in the month of January this year.

The reduction in oil imports is helping in easing pressure on the country’s overall import bill. The PBS data showed petroleum products imports declined by 15.33 per cent in the first seven months of the ongoing financial year. Meanwhile, import of crude oil had gone down by 26 per cent. Similarly, import of liquefied natural gas fell by 31.07 per cent. However, liquefied petroleum gas (LPG) imports increased by 47.12 per cent in value in July-January. 

Meanwhile, machinery imports went down 2.23 per cent to $5.16 billion in the first seven months from $5.28 billion. The decline in imports was recorded for almost all kinds of machinery except mobile phones. Import of mobile phones had increased by 49.32 per cent in seven months and recorded at $1.14 billion. Import of other apparatus fell by 7.96 per cent. The overall transport group has witnessed growth of 47.77 per cent. Pakistan’s overall imports have stood at $29.21 billion in first seven months of current fiscal year as compared to $27.32 billion in same period of the last year, showing an increase of 6.92 per cent. Pakistan’s exports have increased by 5.53 per cent. Exports were recorded at $14.24 billion in July to January period of FY2020-21 as against $13.5 billion in same period of the last year. Therefore, Pakistan’s trade deficit has swelled to $14.96 billion in first seven months (July 2020 to January 2021) of the current fiscal year FY21).