ISLAMABAD: Pakistan maintains a trade deficit due to high imports of energy products including fuel, machinery equipment and chemicals, says Pakistan Bureau of Statistics (PBS).
The PBS in its “annual analytical report on external trade statistics of Pakistan fiscal year 2020-21,” stated that the country started having trade deficits from fiscal year 1955 till this date. Pakistan joined the World Trade Organization in 1995, but its terms of trade remained favourable, the report noted. Main import partners are the United Arab Emirates and China.
The report noted that exports during July-June, 2020-2021 totaled Rs4,041,927 million as against Rs3,369,782million during the corresponding period of last year showing an increase of 19.95 percent.
In terms of US dollars, the exports during July–June, 2020-2021 totaled $25,304 million (provisional)against $21,394 million during the corresponding period of last year showing an increase of18.28 percent. Imports during July–June, 2020-2021 totaled Rs8,982,441 million (provisional) as against Rs7,029,819 million during the corresponding period of last year showing an increase of 27.78 percent. In terms of US dollar, the imports during July–June, 2020-2021 totaled $56,380 million(provisional) as against $44,553 million during the corresponding period of last year showing an increase of 26.55 percent. The balance of trade figures from July-June2020-2021 were (-)4,940,514 million in terms of rupees and (-)31,076 million in US dollars, it added.
The highest share to the growth in total imports is that of food group.
Energy sector not out of the woods yet
During fiscal year 2021, food group having 14.81 percent share of the total imports, witnessed a growth of 53.91 percent and its import reached $8,347.8 million as against $5,423.9 million during the fiscal year 2020. Within food group, surge was observed in the import of wheat, sugar, palm oil, and dry fruits.
Due to supply disruptions, 3,613 MT of wheat was imported amounted to $983.33 million. Likewise, by the reason of deficiency of production, sugar import bill clocked at $128.65million.
Milk, dry fruits, tea, spices, and pulses all showed increasing trend and increased by 17.54 percent,128.93 percent, 8.97 percent, 29.31 percent, and 15.48 percent.
Machinery group with 18 percent share in overall imports increased by 15.47 percent and reached $10,147 million during fiscal year 2021 as compared to $8,782 million in fiscal year 2020.
Petroleum group imports bill, having a share of 20.15 percent of total imports, plummeted and showed negative growth of 8.26 percent during the period of July-April 2020-21 as compared with the same period of last year and dropped to $8,697.8 million from $9,481.0 million due to sharp rise in demand and international price of petroleum.
Imports during May 2021 and June 2021, an increase of 185.84 percent was observed in imports as compared to the same period of last financial year. Subsequently, the imports bill for the whole fiscal year 2021 clocked at $11,357.9 million as compared to $10,411.5 in fiscal year 2020 and exhibit a surge of 9.09 percent.
Exports of textile manufacturers, which accounts for 60.86 percent in total exports witnessed a remarkable increase of 22.93 percent during fiscal year 2021 in comparison with a negative growth of 6.01 percent of last year and amounted to $15.399 billion in fiscal year 2021 as compared to $12.527 billion during fiscal year 2020.
Copyright Business Recorder, 2021
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