Pakistan’s non-energy import bill down 12.5% in October

ISLAMABAD: Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood was informed that Pakistan’s non-energy import bill has decreased 12.5 per cent in October 2021.

Pakistan’s non-energy import bill has decreased 12.5 per cent, a decrease of $624 million, compared with September 2021.

The commerce adviser chaired a meeting to discuss the imports of goods during the current financial year and their impact on trade and current account deficits, a statement issued by the Ministry of Commerce said.

The meeting was also informed that in terms of a month-on-month growth, the non-energy imports have been on the decline during the first four months of this financial year.

This is a welcome trend, which bodes well for the trade deficit and the current account deficit.

Dawood directed the officials attending the meeting to work closely with the State Bank of Pakistan (SBP) on curbing import of non-essential imports.

He was informed that the Ministry of Commerce is keeping a close eye on imports. The ministry and the State Bank are working closely to analyse the imports so that timely interventions can be made.

During the period July-October 2021, the imports increased 64 per cent to $24.99 million, compared with $15.19 billion during July-October 2020.

In absolute terms, the net increase in imports over this period is $9.801 billion.

Upon detailed analysis it has been observed that around 40 per cent of this increase is in the investment-driven imports namely, raw materials and intermediate goods, the meeting was informed.

Tarin was also briefed that the increase in the imports of raw materials and intermediate goods was a good thing, as it indicates that the industrial activity in the country was picking up.

The increase in the import of capital goods, including machinery, was indicative of the industrial expansion, upgradation and setting up of new industries.

In the long run, these imports are very important for the economic growth and job creation.

When asked about the remaining 60 per cent of imports, he was informed that these mainly consist of energy (petroleum, coal and gas), 34 per cent; vaccines, 11 per cent; food, 8 per cent; consumer goods, 2 per cent; and all others, 5 per cent.

These imports were the purview of the relevant ministries and most of these are of inelastic nature.

The meeting was also briefed on the details of the imports categories of which consumer goods are $239 million; food $823 million; capital goods, $1.620 billion; raw materials and intermediates $2.209 billion; petroleum, coal and gas, $3.364 billion, vaccines, $1.068 billion and all others, $478 million.

The Ministry of Commerce also briefed Dawood about the effects of interventions made by the ministry and the central bank.