Petroleum, Agro-products and Machinery imports decline significantly during 10MFY20

May 28, 2020 (MLN): Petroleum, Agriculture Products & Chemicals, Machinery and Food are the commodities that Pakistan imported heavily during Jul-Apr FY20 as they accounted for 23%, 16%, 14% and 11% of the total import respectively.

Even though Pakistan is heavily dependent on oil because of its widespread use in the economy, during 10MFY20 the import bill of Petroleum group shrank by 29% YoY to $8.43 billion compared to $11.86 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 25%, 40% and 20% YoY respectively.

Meanwhile, the import of Agriculture and Other Chemicals witnessed a decline of 17% YoY to $ 5.92 billion during the period under review against $7.1 billion in Jul-Apr 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 the period under review recorded at $1.64 billion, depicting a decline of 14% YoY from $1.9 billion in Jul-Apr 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 $5.14 billion versus $ 5.58 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 25.3% of the entire group’s import. The imports of Telecom machines surged by 35% YoY to $1.3 billion, from $967.5 million in the corresponding period of last year.

Within the Telecom, the imports of Mobile Phones jumped significantly by 77% YoY to $880.79 million from $498.5 million during Jul-Apr 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 4% and 15% YoY, while imports of Tea declined by 10% YoY. This has reduced the total group’s import bill by 3% YoY to $3.86 billion.

The imports of other products such as Textile, Metals and Transports also witnessed a decline of 12%, 17% and 37% YoY respectively during 10MFY20.

In the month of April’20 alone, the imports of Petroleum Products went down by 32% YoY and increased by 11% MoM, while, the imports of Agriculture Products & Chemicals and Machineries both went down by 22% and 42% YoY and 6% and 25% MoM respectively.

Copyright Mettis Link News

Posted on: 2020-05-28T17:48:00+05:00

34949