Imports of Petroleum, Agriculture Products and Machinery witness significant decline during 8MFY20

March 23, 2020 (MLN): Petroleum, Agriculture Products & Chemicals, and Machinery are the commodities that Pakistan imported heavily during Jul-Feb FY20 as they accounted for 24%, 16% and 15% of the total import respectively.

Even though Pakistan is heavily dependent on oil because of its widespread use in the economy, during 8MFY20 the import bill of Petroleum group shrank by 28% YoY to $7 billion compared to $9.86 billion in the corresponding period last year.

According to the latest data issued by the State Bank of Pakistan (SBP), the main products during the period that contributed in declining Petroleum’s import bill were Petroleum Products, Petroleum Crude, and Natural Liquefied Gas as their imports declined notably by 29%, 36% and 15% YoY respectively.

Meanwhile, the import of Agriculture and Other Chemicals witnessed a decline of 17% YoY to $ 4.8 billion during the period under review against $5.76 billion in Jul-Feb 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 27% of the entire group's imports. Total Plastic Material imports during the period under review recorded at $1.3 billion, depicting a decline of 15% YoY from $1.5 billion in Jul-Feb 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 mere decline of 3% YoY to $4.3 billion versus $ 4.47 billion in the same period of last 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 25% of the entire group’s import. The imports of Telecom machines surged by 46% YoY to $1 billion, from $733.5 million in the corresponding period of last year.

Within the Telecom, the imports of Mobile Phones jumped significantly by 94% YoY to $710.7 million from $366.8 million during Jul-Feb FY19.

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