ISLAMABAD: Pakistan’s import bill jumped by 64 per cent or $ 25.1 billion—in the first four months of the current fiscal year from July to October—compared to $ 15.2 billion in the corresponding months of the last financial year, federal government admitted in Senate on Wednesday.
“Increase in import is mainly due to substantial increase in the prices of oil, gas, coal and food commodities in the international market,” reads a reply from Commerce Ministry shared in the Senate sitting during question hour, in response to a question by Zeeshan Khanzada from the ruling party Pakistan Tehreek-e-Insaf (PTI).
The PTI senator asked whether it was a fact that the import bill during the first four months of the current fiscal year 2021-22 increased to around $ 20 billion— and steps taken to reduce the same during the remaining months of the fiscal year.
The Commerce Ministry, in its reply, confirmed an increase in the import bill, which, it said, was also due to investment in capital goods, raw material and intermediate goods due to enhanced activity in industrial sector.
It said significant increase in the import of vaccine has also impacted the imports bill.
The government, the ministry said, is taking following steps to deal with the situation: State Bank of Pakistan (SBP) has imposed 100 per cent cash margin requirements (CMR) on import of 525 items to discourage the import. The government is also considering levying the regulatory duty on the import of luxurious items to reduce the import bill, the ministry said.
Finance Ministry, in its reply to a question posed by Kamran Murtaza from Jamiat Ulema-e-Islam Fazal (JUI-F), revealed that six federal ministries/divisions abolished some 2,742 posts from basic scale (BS) 1-16 in pursuance of the decision taken by Cabinet Committee on Institutional Reforms (CCIR) in March this year to abolish posts in BPS 1-16 that remained vacant for more than one year (with certain exceptions.)
July-August: Pakistan's food import bill increases 50% YoY, amounts to $1.47bn
The data shared by Finance Ministry suggested that Pakistan Post abolished 2,646 posts, Inter Provincial Coordination Ministry: 39 posts, Federal Board of Intermediate and Secondary Education (FBISE): 28 posts, Establishment Division: 20 posts, National Council of Social Welfare: eight posts and Religious Affairs Ministry abolished one post.
“It is one time activity on the directions of CCIR,” the ministry stated.
In response to another question by Hidayatullah Khan from Awami National Party (ANP) regarding steps taken to broaden tax net in Pakistan, the Finance Ministry said, powers have been granted to Federal Board of Revenue (FBR) to direct the gas and electricity distribution companies for discontinuance of gas and electricity connections of traders required to integrate their outlets with FBR or notified tier-1 retailers.
Meanwhile, on the first sitting of the 316th Senate session presided over by Chairman Sadiq Sanjrani, the House observed a minute’s silence to pay its respects to Priyantha Kumara, the victim of Sialkot lynching incident.
The House decided to suspend its regular business agenda on Friday (tomorrow) to discuss the Sialkot lynching incident, on the request of Leader of the House in Senate Dr Shahzad Waseem.
Taking the floor, he said that all the members of the House wanted to discuss the tragic incident— and recommended that a sitting be held to exclusively take up the matter. It was then decided to take up this issue on Friday.
Responding to a point of order, Waseem passed the buck on former governments for unprecedented inflation in the country.
Jul-Aug period: CA posts $2.2bn deficit on higher import bill
He said the federal government will have to pay $ 55 billion loans in five years, adding that government paid loans of $ 29 billion in last three years and it is paying $ 12.2 billion loans this year while $ 12.5 billion would be paid next year.
The former Pakistan Muslim League Nawaz (PML-N) government paid $ 27 billion during its five-year tenure, he added.
Waseem admitted that the government was faced with ‘severe’ economic challenges but claimed that it was “making every effort not to burden the common man.”
Speaking on the floor of the House, former chairman Senate Raza Rabbani from Pakistan Peoples Party (PPP) said, the government was not explaining the reasons behind unprecedented increase in the prices of gas, electricity and fuel.
He termed the reports as ‘really disturbing’ that government was bringing a presidential ordinance related to SBP autonomy, which, he said, would end federal government’s control on SBP and make the latter answerable to the IMF only.
Parliamentary Affairs State Minister Ali Muhammad Khan said hike in petroleum products’ prices was linked to fuel price hike in international market. He said the government would ensure that “no injustice is meted out at the people.”
The House would meet again Friday morning.
Copyright Business Recorder, 2021
Comments
Comments are closed.