MARKET DEVELOPMENT
Govt Spent $14.42b on Oil, Food Imports in 9 Months
Govt Spent $14.42b on Oil, Food Imports in 9 Months
20/04/2013 (The Nation) - The cash-starved government spent a huge amount of $14.429 billion on food and oil imports during nine months (July to March) of the current fiscal year (2012-2013).
According to the figures of Pakistan Bureau of Statistics (PBS), the country spent $14.429 billion on importing food items and petroleum products during July 2012 to March 2013 period as compared to $14.942 billion of the corresponding period of the previous year, showing a minor decline of 3 per cent in one year. The break-up of $14.429 billion revealed that country spent $11.078 billion on importing petroleum products and $3.351 billion on importing foodstuff during July to March period of the year 2012-2013.
The foreign exchange reserves are so precious for the cash-strapped economy of Pakistan at present when its foreign exchange reserves are under severe pressure that stands to cover just around two months worth of import bills. Pakistan’s foreign exchange reserves stood at $11.690 billion wherein commercial banks held reserves are $5.049 billion and reserves held by the central bank went down to at $ 6.640 billion. The reserves would come down to below $6 billion dollars at the end of June 2013 due to heavy repayments to IMF in last two months (May and June) of the current financial year.
The break-up of $ 11.078 billion oil import bill revealed that country has spent $7.027 billion on petroleum products and $4.051 billion on import of petroleum crude during the first nine months of the ongoing financial year 2012-2013. Petroleum import has occupied more than one-third of the country’s total imports of $ 33.414 billion during nine months from July to March. The phenomenon of increased imports stemmed from the effect of the circular debt’s problem, which is piling up. Analysts said that the country should ensure energy supply through own resources; otherwise the oil import bill would affect the country’s fiscal position.
The PBS figures revealed that country imported foodstuff worth of $ 3.351 billion during July-March period of the year 2012-13. The break-up of $3.351 billion revealed that import bill of milk products went down by 17.57 per cent, dry fruits and nuts import down by 8.35 percent, import of tea increased by 9.60 per cent, import of spices decreased by 33.14 per cent, soybean oil’s imports enhanced by 17.11 per cent, palm oil import declined by 10.17 per cent, sugar import decreased by 72.57 per cent, import of pulses went down by 4.68 per cent and import of all other food items decreased by 19.38 per cent during the period under review.
Meanwhile, according to PBS figures, the country imported machinery worth of $ 4.881 billion, transport group imports stood at $1.517 billion, textile group $1.946 billion, agricultural and other chemicals $4.685 billion, metal group $2.402 billion, miscellaneous group imports were recorded at $603 million and all other items imports remained $2.948 billion during July-March period of 2012-13 against July-March period of 2011-12.
It is worth mentioning here that Pakistan imports stood at $33.414 billion in July-March period of ongoing financial year as compared to the exports worth $18.017 billion, leaving trade deficit at $15.40 billion in first nine months of the current financial year.
According to the figures of Pakistan Bureau of Statistics (PBS), the country spent $14.429 billion on importing food items and petroleum products during July 2012 to March 2013 period as compared to $14.942 billion of the corresponding period of the previous year, showing a minor decline of 3 per cent in one year. The break-up of $14.429 billion revealed that country spent $11.078 billion on importing petroleum products and $3.351 billion on importing foodstuff during July to March period of the year 2012-2013.
The foreign exchange reserves are so precious for the cash-strapped economy of Pakistan at present when its foreign exchange reserves are under severe pressure that stands to cover just around two months worth of import bills. Pakistan’s foreign exchange reserves stood at $11.690 billion wherein commercial banks held reserves are $5.049 billion and reserves held by the central bank went down to at $ 6.640 billion. The reserves would come down to below $6 billion dollars at the end of June 2013 due to heavy repayments to IMF in last two months (May and June) of the current financial year.
The break-up of $ 11.078 billion oil import bill revealed that country has spent $7.027 billion on petroleum products and $4.051 billion on import of petroleum crude during the first nine months of the ongoing financial year 2012-2013. Petroleum import has occupied more than one-third of the country’s total imports of $ 33.414 billion during nine months from July to March. The phenomenon of increased imports stemmed from the effect of the circular debt’s problem, which is piling up. Analysts said that the country should ensure energy supply through own resources; otherwise the oil import bill would affect the country’s fiscal position.
The PBS figures revealed that country imported foodstuff worth of $ 3.351 billion during July-March period of the year 2012-13. The break-up of $3.351 billion revealed that import bill of milk products went down by 17.57 per cent, dry fruits and nuts import down by 8.35 percent, import of tea increased by 9.60 per cent, import of spices decreased by 33.14 per cent, soybean oil’s imports enhanced by 17.11 per cent, palm oil import declined by 10.17 per cent, sugar import decreased by 72.57 per cent, import of pulses went down by 4.68 per cent and import of all other food items decreased by 19.38 per cent during the period under review.
Meanwhile, according to PBS figures, the country imported machinery worth of $ 4.881 billion, transport group imports stood at $1.517 billion, textile group $1.946 billion, agricultural and other chemicals $4.685 billion, metal group $2.402 billion, miscellaneous group imports were recorded at $603 million and all other items imports remained $2.948 billion during July-March period of 2012-13 against July-March period of 2011-12.
It is worth mentioning here that Pakistan imports stood at $33.414 billion in July-March period of ongoing financial year as compared to the exports worth $18.017 billion, leaving trade deficit at $15.40 billion in first nine months of the current financial year.