Engineering Post Report
Pakistan’s total imports during July -March FY2022 clocked at US $ 58.9 billion as compared to US $ 39.5 billion in the same period last year, showing a growth of as much as 49.1 per cent . The increase in imports was recorded in all the major groups. Multiple factors were reported to have contributed significantly to the increasing import value.
Disaggregated data on imports indicated that the energy group was the largest source of the increase in country’s imports contributing over one-third to the Year On Year increase in imports during the period. Similarly, price-led pressures were also noted across non-energy commodities imported by Pakistan such as edible oil ( palm and soybean), sugar, tea, fertilizer and steel. At the same time, the domestic demand for imported raw materials such as cotton and steel and capital goods also elevated in the wake of the policy-induced economic rebound.
Group-wise, the import of petroleum group increased by as high as 96.1 per cent duing July-March FY2022 and reached US US $ 14812.5 million as compared to the US $ 75523.9 million during the corresponding period previous year mainly due to historically high global oil prices. Within the petroleum group, the petroleum products increased both in quantity and value by 20.0 per cent and 111.4 per cent respectively.
Machinery group is regarded as the vital engine of growth for successful industrial and manufacturing sector development. Its import increased substantially by 21.7 per cent and reached US $ 8684.5 million during July-March FY2022 as compared to UD $ 7132.8 million during the same period last year. Within the group, import bill of power generating machinery decreased by 8.9 per cent and reached US $ 1235.8 million as compared to US $ 1356.0 in the same period last year.. The import bill of textile machinery registered an increase of 64.7 per cent reaching the level of US $ 621.7 million during July-March FY2022 against US $ 377.5 last year.
The textile sector availed Rs 94.billion loans under different incentive-oriented schemes during July-March FY2022 as against Rs 678.8 billion which may have augmented the demand for textile machinery.
Electrical machinery and apparatus imports registered a growth of 37.5 per cent to the US $ 1515.2 million during the period under report over US $ 1101. 7 million imports in the same period last year.
The ongoing increase in the industrial activity especially in the textile industry and transport sector had raised the demand for switch gears and other electrical equipment leading to the increased demand of electrical machinery.
Metal group import also increased bt 38.4 per cent and reached US $ 5011.9 million. The reviving activity in the construction and automobile sectors led to an increase in the import of iron and steel by 53.1 per cent in value and 20.5 per cent in quantity during July 2021-March 2022. Imports of iron and steel scrap also increased in value by 30.8 per cent despite decline of 18.3 per cent in quantity during July-March FY2022 mainly due to rising prices internationally.
Pakistan imports from countries like China, Saudi Arabia, UAE and Indonesia constituting around 50 per cent of its total imports. Imports in varying values and goods are also made from India , USA, Japan, Germany, Malaysia among other countries.