July 29, 2020 (MLN): The major importable goods during FY20 were Petroleum, Agriculture Products & Chemicals, Machinery and Food as they accounted for 22%, 17%, 15% and 11% of the total import respectively.
Even though Pakistan heavily dependent on oil, during FY20 the import bill of Petroleum group shrank by 34% YoY to $9.23 billion compared to $13.92 billion in FY19 and $13.26 billion in FY18.
According to the latest data issued by the State Bank of Pakistan (SBP), the main products during FY20 that contributed in declining Petroleum’s import bill were Petroleum Products, Petroleum Crude, and Natural Liquefied Gas as their imports declined notably by 31%, 48% and 17% YoY respectively.
Meanwhile, the import of Agriculture and Other Chemicals witnessed a decline of 16% YoY to $7 billion during the fiscal year under review against $8.39 billion in FY19.
Agriculture and Chemicals imported to Pakistan mainly include Manufactured Fertilizer, Insecticides, Plastic material, Medicinal Products, and other Agricultural and Chemical products
The major chunk of imports under the Agriculture and Chemical Products was mainly in the Plastic Materials which contributed a total of 28% of the entire group's imports. Total Plastic Material imports during FY20 recorded at $1.95 billion, depicting a decline of 14% YoY from $2.27 billion in FY19.
Similarly, the import bill of Machinery group which comprises of Power Generating Machine, Office Machines and Equipment, Textile Machines, Construction & Mining Machinery, Electrical Machinery, Telecom, Agriculture and Other Machinery, witnessed a decline of 8% YoY to $6.2 billion versus $6.7 billion in previous fiscal year.
Under the Machinery group, the major portion of import was associated with Telecom machines which consist of Mobile Phones and other Apparatus as it constituted for 27% of the entire group’s import. The imports of Telecom machines surged significantly by 40% YoY to $1.64 billion, from $1.17 billion in FY19.
Within the Telecom, the imports of Mobile Phones jumped significantly by 84% YoY to $1 billion from $596.42 million during FY19.
Next in line is Food group whose share in overall country’s import bill was 11% during the period under review. The major food items which Pakistan imported the most include, Palm Oil, Tea and Pulses. The imports Palm Oil and Pulses witnessed a surge of 5% and 23% YoY, while imports of Tea declined by 3% YoY. This has reduced the total group’s import bill by 1% YoY to $4.7 billion.
The imports of other products such as Textile, Metals and Transports also witnessed a decline of 14%, 17% and 34% YoY respectively during FY20.
In the month of June’20 alone, the imports of Petroleum Products, witnessed a decline of 9% MoM and 65% YoY to $381.67 million. Whereas, the import of Agriculture & Other Chemical saw a drop of 3% YoY and a rise of 8% MoM to $582 million.
The imports of Machinery items during the month augmented notably by 106% MoM and 28% YoY to $717.62 million.
Copyright Mettis Link News