Across-the-board decline in imports

[Naveed Yaseen]

By Tanveer Ahmed
KARACHI: The import of almost all the categories fell during the first eleven months of current financial year, bringing relief to the government over the burgeoning import bill in the beginning of current year.

The import of all groups went sharply down in the recent past, particularly on account of high oil and commodity prices.

However reduction in the prices coupled with low demand, cut the import of these groups in the months under review.

Food group imports decreased 4.26 percent to $3.076 billion during July-May 2008-09 over $3.871 billion in the corresponding period of last year. The reduction in the food imports was led by decreasing trend in the import of milk and its products, spices, soyabean oil and palm oil etc.

The imports of petroleum products decreased to $8.556 billion in first eleven months of current year over $10.097 billion, reflecting 15.26 percent negative growth.

Analysts attributed the decrease of crude oil import to fall in prices in international market coupled with reduction in quantity demanded for last few months. Crude imports fell 22.95 percent to $3.550 billion against $4.608 billion in the same period of previous year.

Whereas the petroleum manufactured products reduced to $5.006 in the period under review over $5.488 billion in the same months of previous year, depicting 8.80 percent decline.

The crude prices in global market remained in the range of $50-60 per barrel during the months under review, which benefited the country quite a lot in terms of saving the precious foreign exchange.

Transport group imports plunged 45.94 percent to $1.133 billion during the said period against $2.096 billion in previous year. The reduction in machinery imports was driven by decline in the import of road motor vehicles, which were down 32.26 percent, CBU 62.24 percent and parts and accessories.

The import of machinery group was down 9.08 percent to $ 5.989 billion in the months under review against $6.587 billion in the same months of previous year. Import of textile machinery declined 51.67 percent, telecom import 56.43 percent and office machinery 16.76 percent etc. Construction machinery import was up 16.36 percent and power generating machinery rose 55 percent.

Import of textile group decreased 33.45 percent to $1.465 billion over $2.201 billion in the previous year. The import of agriculture and other chemical products saw their import falling 8.18 percent to $4.823 billion over $5.253 billion in the previous year.

The import of metal group remained flat in first eleven months of current financial year whereas the import of miscellaneous declined 10.40 percent in the said period.

In July-May of current fiscal, country's total import stood $31.483 billion over $35.941 billion same period last year, depicting 12.41 percent decline.

http://www.dailytimes.com.pk/default.asp...2009_pg5_1