An analysis of commodity wise
From YOUSAF RAFIQ
Special Correspondent, Islamabad
Mar 06 - 12, 2000
PakistanÝs trade deficit during the first six months of the fiscal
year 1999-2000 has registered an increase of 39 percent compared to the corresponding
period of last year as it went up to $ 783 million from $ 564 million. Increases in trade
deficit was witnessed due to higher imports of petroleum and petroleum products ie 81
percent as compared with the last correspondent year. The increase in petroleum crude was
69.3 percent which was due to higher unit prices by 81.5 percent despite decline in the
volume by 6.7 percent.
However the imports of petroleum products increased by 85.8 percent due
to both increase in unit price and volume by 60 percent and 16.1 percent respectively.
The exports as ratio of import also declined to 84 percent during
July-December 1999-2000 from 87 percent during July December 1998-99. Export trend of
July-December 1999-2000 is encouraging when compared with the same period of last year.
During July-December export increased to $ 4103 million from $ 3819 million during the
same corresponding year, registering an increase of 7.4 percent. Export of almost all
textile items have shown increasing tend except towels and cotton bags and sacks. The
export of raw cotton has also increased by 416.7 percent . This increase is due to export
of higher quality despite decrease in unit value of the item in the international market.
Carpets have shown increasing trend in the export due to increase both in quality and unit
value. Sports goods and surgical goods have also shown increasing tend in export during
the period under review. Export of non traditional items like petroleum and petroleum
production, onyx manufactured, chemical and pharmaceutical products and molasses have also
shown increasing trend during the period under review. Sizeable increase has been
witnessed in the export of food items like fruits, vegetables and fish, and fish products.
Sources said the MoC was of the view that overall position is
encouraging in the sense that despite continuing decline in unit value quantities of
almost all the major items like rice, raw cotton, cotton year, cotton cloth kitwear,
bedwear, ready made garments, art silk , synthetic, textile , made up articles of textile
and carpets have registered increase and the position is likely to improve further if
there is a turn around in the unit value.
Sources said the MoC also analysied the commodity wise export figures
as well PRIMARY COMMODITY: During the period under review export of primary commodities
increased to $ 471.8 million from $ 426.8 million during the corresponding period of last
year, registering an increase of 10.5 percent.
Sources said increase of primary commodities was due to higher export
of rice 14.2 percent, raw cotton 416.7percen,t fish 20.3 percent gur and gur products
54.4. percent, fruits 14.4 percent and vegetable 32.4 percent. Whereas, sources added the
export value of raw wool declined by ˝52.9 percent, leather -15.2 percent, crude animal
material ˝14.9 percent and oilseed nuts kernals ˝60 percent.
Sources said decline in leather export can be attributed to continued
recession in the international market and economic turmoil in the South East Asian
countries. Because of the increasingly fierce competition in the international market, our
export have inevitably achieved lower unit price realization. Decline in leather is also
because of more conversion of leather tanned into manufactured goods sports gloves of
leather and football etc and the rise in price of basic raw material and other imported
inputs have raised the cost of production of tanned leather.
Sources said as far as textiles group is concerned, impact of price
decline was dominant . The export of textile manufactures amounted to $ 2683.1 million
during July-December 1998-99 registering an increase of 7.6 percent. The export of cotton
yarn , cotton cloth, knitwear, bed wear, ready made garments, tents, tarpaulian , tule
lace embroidery, art silk and synthetic textile and made up articles increased despite
decline in price. This increase is due to higher export in quantity . Export value of
towels, cotton bags, and waste material textile fiber declined.
Sources said it was disclosed during the meeting that the export of
other manufacturers increased by 9.5 percent During July-December 1999-2000. The export of
other manufacturers amount to $ 584 million as against $ 563 million during July-December
1998-99. The export of sports goods 6.9 percent surgical 9.1 percent, carpets 22.2
percent, petroleum products 141.4 percent, onyx manufactured 44.4 percent, chemical 44.1
percent and molasses 21.4 percent, thus registering an increase during July December
1999-2000 as compared to the correspondent period of last year.
Sources said the commerce ministry claimed that during July-December
1999-2000 imports increased by 11.5 percent amounted to $ 4885.8 million from $ 4383
million in the correspondence period of last year. The increase was witnessed due to
higher imports of petroleum and petroleum products i.e 81 percent as compared to last year
.The increase in petroleum crude was 69.3 percent, which was due to higher unit prices by
81.5 percent despite decline in the volume by 6.7 percent.
Commoty wise analysis of imprts
FOOD GROUP: The import of food group decreased to $ 523.9 million
during July December 1999-2000 from $809 million during the corresponding period of last
year showing a decrase of 35.3 percent. This decline was mainly due to fall in the import
of wheat 6.4 percent, tea 22.2 percent, soybean oil ˝56.9 percent and palm oil ˝53
percent, sugar ˝75 percent and pulses ˝13.4 percent.
The import of machinery group declined by 5.5 percent to $ 925 million
from $ 980 million in 1998-99. Major decline has been observed in the import of power
generating machinery ˝44.9 percent textile machinery ˝13.4 percent, construction
machinery ˝41.2 percent and electric machinery ˝10.4 percent. However, sources said the
import of office machinery and agricultural machinery indicated an increase of 4.4 percent
and 58.3 percent during the period under review.
Import of petroleum crude and petroleum products also increased to $
1200 million during July-December 1999-2000 from $ 664.9 million in the corresponding
period of last year showing an increase of 8.6 percent. The increase was witnessed due to
higher mports of petroleum and petroleum products ie 80.6 percent as compared to last
year. The increase in petroleum crude was 69.3 percent which was due to higher unit price
by 81.5 percent. Despite decline in the volume by 6.7 percent. However, the import of
petroleum products increased by 85.8 percent due to both increase in unit price and volume
by 60 percent and 16.1 percent respectively.
Import of textile groups declined to $ 78.2 million during
July-December 1999-2000 from $ 842 million in the corresponding period of last year
showing an decrease of 7.1 percent. This decline is due to sharp fall in the prices of
synthetic fiber ˝22 percent. The increase in import of synthtic and artificial silk yarn
by 21.2 percent and worn clothing by 8.5 percent during July December 1999-2000 as
compared to July December 1998-1999.
The import of chemical group increased by 3 percent to $ 952 million in
1999-2000 from $ 925 million in the corresponding period. Import value of insecticides
increased by 10 percent due to higher quantity imported and unit value during
July-December 1999-2000 as compared to last year period. Import of plastic material also
increased by 1.2 percent due to increase in unit value despite decline in quantity during
the period under review
Import of metal group increased to $ 182.6 million during July-December
1999-2000 from $ 168.8 million of the same period of last year showing an increase of 8.2
percent. The increase was due to higher import of iron and steel 9.4 percent and aluminum
wrought and worked 2.2 percent.
Import of miscellaneous group decreased to $ 124.1 million during
July-December 1999-2000 from $ 126.8 million of last year showing a decline of 2.1