Pakistan’s oil import bill would consume $15.68 billion during next financial year 2014-15 that is almost at the same level of outgoing fiscal year 2013-14 mainly because of stability in exchange rate.
The Annual Plan 2014-15 showed that Pakistan would spend $15.68 billion on importing oil next fiscal year, which is slightly less than the estimates of $15.96 billion of the outgoing year. The estimate is based on a decline in import of petroleum products and anticipated decrease in international oil prices. Similarly, the government has also kept the exchange rate at stability. For the outgoing year, the oil import bill was estimated at $15.96 billion but it came to $13.254 billion due to low consumption because of the rupee appreciation. Therefore, the government has kept oil import bill target at $15.68 billion. The break-up of $15.68 billion showed that government would import petroleum products worth of $9.67 billion and crude oil $6.009 billion during next financial year.
According to the Annual Plan, the government would import machinery worth of $6.807 billion in next fiscal year mainly because of pickup in development/ energy projects in the country. The country would import electrical machinery worth of $1.127 billion, power machinery $1.08 billion, road motor vehicles $1.408 billion and telecom machinery worth of $1.455 billion. The government had estimated $4.416 billion for importing machinery during outgoing financial but it would end at $6 billion.
Meanwhile, the government would import agriculture and other chemicals worth of $6.62 billion in the upcoming fiscal year. Similarly, the government would import food products worth of $4.319 billion and metal group worth of $3.19 billion and other products worth of $10.329 billion in next fiscal year 2014-15.
According to the Annual Plan, Pakistan’s total import bill is estimated for $46.95 billion against the exports $26.435 billion for next financial year 2014-15, leaving trade deficit at $20.51 billion.
The break-up of exports showed that textile exports are projected at $14.49 billion, other manufacturing at $5.182 billion, food group exports at $5.023 billion and other exports at $1.85 billion during upcoming financial year 2014-15.