Islamabad (TDI): Pakistan’s food import bill increased by more than 50% to $1.473 billion in the first two months of the current fiscal year (2MFY22) from $0.980 billion over the corresponding months of last year to bridge the gap in food production.
The Pakistan Bureau of Statistics (PBS) released data on Friday indicated that.
A trade deficit is being caused by the ongoing food import bill, which could make the government nervous on the world stage.
In the previous fiscal year, Pakistan imported food items worth over $8 billion, which is worth noticing.
Due to the government’s decision to buy 4 million tons of wheat and 0.6 million tons of sugar in order to establish strategic reserves, the cost of importing food would increase over the next months.
In July and August of FY22, the overall import cost increased by 74.09 percent to $12.16 billion, compared to $6.98 billion during the same months in the previous year.
The main products that are imported to meet domestic demand are sugar, wheat, palm oil, and lentils.
A scarcity in home production was evident in the first two months of this year, as the import bill of all food commodities showed increases in both quantity and value
Small Edible Items Carry Higher Weight
Pulses, wheat, sugar, edible oil, spices, tea, and tea made up the majority of the import food group composition. In terms of quantity, value, and per value terms, imports of edible oil increased significantly.
From $352.729 million in July and August of last year to $577.022 million in August of FY22, the value of palm oil imports increased by 63.59 percent.
During the same time period, there was a 12.69 percent negative growth in the quantity of palm oil imported. The rise in the commodity’s international price led to an increase in the import bill for palm oil.
Also read: Pakistan Imports 6.18 Million Metric Tons of Wheat in Two Years
For domestic consumers, this has led to an increase in the cost of cooking oil and vegetable ghee during the past few months.
To assist customers, Federal Board of Revenue has been requested by Finance Minister Shaukat Tarin to investigate the matter of tax incidence.
Between 2MFY22 and 2MFY21, there was a 42.15 percent value decline and a 67.75 percent quantity decline in soy bean oil imports.
In the first two months of the current fiscal year, Pakistan imported 57,000 tons of wheat, up 44.86 percent from 39,348 tons imported in the same period previous year.
As opposed to no imports the year before, the government imported 3.612 million tons of wheat for $983.326 million in the first nine months of the year.
Wheat has not been imported between April 2021 and July 2021. In order to maintain buffer stock, the cabinet’s Economic Coordination Committee has decided to purchase 4 million tons of wheat.
Compared to 1,548 tons in the previous year, the import of sugar increased by 6,356 percent to 99,943 tons in July and August of FY22.
In certain marketplaces, sugar is offered at retail for between Rs. 115 and Rs. 120 per kg, despite imports driving up the price of the commodity.
Tea and spice imports increased by 17.24 percent and 37.48 percent, respectively, in July and August of FY22.
Smuggling in border areas is checked, and the growth is mostly caused by a decrease in the import of these products under transit commerce.
In July, there was a significant increase in the import cost for milk, dried fruits, lentils, and other food items.
Also read: Gwadar Port to Handle 50% Imports
Comparing July-Aug FY22 to the same month in FY21, the machinery import bill climbed by 40.96 percent to $1.866 billion.
The China-Pakistan Economic Corridor brought about a 28.18 percent increase in imports of power producing apparatus during the month under review.
From the same months last year, the import of mobile phones decreased by 6.66 percent in July and August of FY22.
The introduction of the Device Identification Registration and Blocking System, a system intended to identify non-compliant devices functioning on local mobile networks, resulted in the first-ever reduction in the import of mobile phones and their gear.
Compared to $262.474 million in the first two months of last year, the import of transportation sector saw a growth of 154.4 percent to $667.789 million.
Large-scale road motor vehicle imports (build unit, CKD/SKD) were the primary driving force behind it.
