ISLAMABAD - Pakistan’s food commodities import bill has swelled to $7.55 billion in eleven months (July to May) of the current fiscal year, putting pressure on the external sector of the economy.
Food import bill has shown massive increase of almost 54 percent and was recorded at $7.55 billion in July to May period of the year 2020-21 as compared to $4.9 billion in corresponding period of the last year. The latest data of Pakistan Bureau of Statistics (PBS) sho wed that import of food commodities has gone up by 54.44 percent to $650.7 million in the month of May.
The massive increase in food import bill is putting pressure on the overall import bill of the country. Imports have recorded an increase of 22.52 percent. The country has imported goods worth $50.048 billion in July-May period of the year 2020-21 as compared to $40.849 billion. On the other hand, exports have enhanced by 13.97 per cent to $22.560 billion in July to May period of the current fiscal year from $19.795 billion of the last year. The trade deficit was recorded at $27.488 billion in July to May period of the year 2020-21 as against $21.054 billion in the corresponding period of the last year.
Pakistan’s oil import has slightly increased by 0.76pc in July to May period of current fiscal year
“Within food group, surge was observed in the import of wheat, sugar, palm oil and dry fruits. Due to supply disruptions in wheat and shortage of production in sugar, government reverted to import of wheat and sugar to meet demand and to control price hike,” the government of Pakistan noted in recent Economic Survey 2020-21. It added that the edible oil, soybeans and palm, import bill, the heaviest item in the food group, increased in both quantity and value. The increase in the import bill of edible oil was mainly attributed to the rise in global palm oil prices, mainly due to lower production in Malaysia and rise in palm oil export levy by US$ 5 per tonne. The import bill of pulses also surged during the period under review.
The breakup of $7.55 billion showed that country has imported wheat worth $983 million in nine 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 $2.397 billion in July to May period of FY2020-21 as compared to $1.704 billion in the same period of last year, showing an increase of 40.61 percent. Sugar import has cost $128.2 million to the national kitty. Meanwhile, the government has imported different pulses worth $623.5 million, milk, cream & milk food for infants’ $175.67 million and tea import cost $537 million in July to May period of the present financial year.
According to the PBS data, Pakistan’s oil import has slightly increased by 0.76 percent in July to May period of the current fiscal year. The country’s oil imports were recorded at $9.882 billion in eleven months of FY2020-21 as compared to $9.807 billion in corresponding period of the last year, showing a minor increase of 0.76 percent. Meanwhile, oil import bill has increased by 262.46 percent to $1.184 billion in the month of May. The breakup showed petroleum products imports declined by 0.15 percent in the eleven months of the ongoing financial year. Meanwhile, import of crude oil had gone up by 5.32 percent. Similarly, import of liquefied natural gas fell by 7.76 percent. However, liquefied petroleum gas (LPG) imports increased by 48.11 percent in value in July-May.
Meanwhile, machinery imports went up by 13.01 percent to $8.863 billion in the eleven months from $7.843 billion in same period of the last year. Import of mobile phones increased by 63.6 percent in eleven months and recorded at $1.860 billion. Import of other apparatus has increased by 6.1 percent. The overall transport group has witnessed growth of 83.33pc.