Import Bill Likely to Touch $50b in FY2017-18

Pakistan’s import bill will once again enhance near to $50 billion during upcoming financial year 2017-18 mainly due to heavy imports of food commodities, machinery and oil products.

Pakistan’s import bill is likely to reach $54 billion during outgoing financial year 2016-17. However, the government has estimated to bring down the import bill to $48.9 billion in the next fiscal year. The government has estimated food imports at $5.7 billion in the year 2017-18. Similarly, the government has projected machinery import at $7.5 billion, transports group $2.7 billion, and metal group at $3.7 billion for the next financial year, according to the Annual Plan 2017-18.

Import of oil products would cost $11.1 billion to the national kitty. The break-up of oil import showed that government would import petroleum products worth $6.7 billion and petroleum crude worth of $3 billion. Meanwhile, the government would also spend huge amount worth $7.4 billion on importing agriculture and chemical goods. Similarly, the government has estimated $10.6 billion for the import of other products.

The Annual Plan showed that the government has estimated exports at $23 billion for the next fiscal year 2017-18 as against $21.8 billion of the outgoing year, showing growth of 5.5 percent.

The break-up of exports showed that government has projected food exports at $3.7 billion. Similarly, textile exports would fetch $13.2 billion in the year to come. In textile exports, cotton yarn exports are projected at $1.2 billion, cotton cloth at $2.2 billion, knitwear at $2.5 billion, bed wear at $2.2 billion, readymade garments at $2.5 billion and other textile products at $2.5 billion.

Similarly, the government has planned to export manufacturers’ goods worth $3.9 billion. In this group, exports of sports goods are estimated at $558 million, leather tanned and manufactures at $911 million, chemicals and pharmaceutical products at $1.1 billion, cement at $320 million and other products at $977 million during the year 2017-18.

The trade deficit, gap between exports and imports, would remain at $25.8 billion for the next financial year as against projected $32.2 billion of the outgoing year.

Food group imports rises 15.96pc in 11 months

APP: The import of food products increased by 15.96 per cent during the period July-May (2016-17) as compared to same period of last year.

During the period under review, the food group imports were recorded at $5.650 billion while during the corresponding period of last year, the imports stood at $4.873 billion.

Among food products, the import of milk, cream and milk food declined to $232.802 million in first 11 months of current fiscal year from the import worth of $244.872 million last year, thus showing a decrease of 4.93 per cent.

The import of dry fruits and nuts however increased by 9.25 per cent from $151.134 million last year to $165.114 million during current year.

Similarly, tea import also increased by 3.19 percent as it was recorded at $491 million during July-May 2016-17 as compared to the import worth $475.821 million. The spices imports went down by 5.11 per cent to $128.152 million in current fiscal year from $135.063 million in last year, whereas soybean oil import witnessed a sharp decline of 35.35 per cent as its import in July-May (2016-17) stood at $112.531 million while during same period of last year, it was recorded at $174.059 million.

The import of palm oil witnessed a growth of 12.76 per cent as it rose from $1.548 billion during first 11 months of last fiscal year to $1.746 billion in same period of current fiscal year.

Sugar import declined by 21.32 per cent as its import during the period under review, was recorded at $4.668 million compared to $5.933 million during last year, whereas the import of pulses jumped by 70.8 per cent to $902.106 million in July-May (2016-17) from $528.168 million in same period of last year.

The import of other food items rose to $1.868 billion during the period under review from $1.609 million last year, thus posting a growth of 16.07 per cent.

On yearly basis, the food group import increased by 10.44 per cent while on monthly basis, the imports went down by 2.19 per cent as the imports in May were recorded at $556.901 million while during April 2017 and May 2016, its import was recorded at $569.38 million and $504.246 million respectively.