IMPORTS IN PAKISTAN

S.KAMAL HAYDER KAZMI
Research Analyst
, PAGE
Dec 01 - 07, 2008

Pakistan's major imported items are petroleum products, machinery, chemical products, foods, Palm oil, Iron & steel, plastic materials, Fertilizer manufactured, raw cotton and transport along with other products etc. During FY 2007-08 the Imports of Pakistan were high as compared to FY2006-07 and the total imports of Pakistan were $39.96 bn. Country's trade deficit has jumped to $7.522 bn in just four months July-October period of current fiscal year 2008-09 as compared to $5.642 bn in the year 2007, indicating an increase of 33.3%. Country's imports have witnessed a surge up to 24.86% and amounted to $14.285 bn in Jul-Oct period as against the total imports of $11.440 bn in same period last fiscal year. Imports during October 2008 were recorded at $ 3.467 bn as against $ 3.384 bn recorded during October 2007. As compared to imports of $3.806 bn during September 2008, imports during October 2008 witnessed a decrease of 8.91%. Thus there has been a consistent increase in the country's imports.

IMPORT PAYMENTS BY COMMODITY
(Thousand US Dollar)

  OCT (P) SEP (R) JULY-OCTOBER JULY-JUNE

Commodity

2008 2008 2008-09 (P) 2007-08 2007-08 (P)
FOOD GROUP
1.Milk And Cream Incl For Infants 5,605 6,123 26,502 29,279 72,527
2.Wheat Unmilled 310,441 179,141 545,686 16 570,829
3.Dry Fruits 5,677 3,777 18,256 16,254 55,846
4.Tea 23,115 21,611 76,886 57,689 180,525
5.Spices 3,510 3,726 19,121 17,959 64,379
6.Soyabean Oil 785 1,478 10,816 19,185 73,286
7.Palm Oil 107,850 207,336 628,560 394,224 1,445,467
8.Sugar 928 556 2,974 6,289 11,898
9.Pulses 6,893 8,636 51,398 63,250 178,890
10.All Others Food Items 41,454 103,603 197,471 286,194 872,803
MACHINERY GROUP
11.Power Generating Machinery 91,006 106,762 368,088 230,726 1,010,723
12. Office Mach.Incl.Data Pros. Equp. 19,590 32,191 116,041 101,101 276,028
13.Textile Machinery 21,257 26,013 174,216 136,459 425,261
14.Construction & Mining Machinery 6,139 6,623 37,719 23,419 83,970
15.Electrical Machinery & Apparatus 115,216 55,756 283,668 228,565 870,567
16. Telecom 49,364 77,480 263,782 467,168 1,330,876
A. Mobile Phone 9,459 12,553 80,165 153,045 445,815
B. Other Apparatus 39,906 64,927 183,617 314,122 885,061
17.Agricultural Mach. & Implement 8,694 14,857 39,583 48,504 152,590
18.Other Machinery 128,755 121,276 523,137 514,075 1,599,952
TRANSPORT GROUP
19. Road Motor Vehicles 70,155 88,344 321,362 348,486 931,700
19.1 Completely Built Unit (Cbu) 10,694 12,056 52,488 113,191 250,458
A. Buses, Trucks & Oth. Heavy Vehicles 6,061 7,530 24,597 59,302 112,720
B. Motor Cars 4,162 4,453 26,715 50,272 131,144
C. Motor Cycles 471 73 1,176 3,617 6,594
19.2 Completely Knocked Down (Ckd) 51,923 69,150 236,995 196,096 573,243
A. Buses, Trucks & Oth. Heavy Vehicles 8,428 15,391 50,173 37,320 126,148
B. Motor Cars 37,064 49,264 164,268 138,685 375,341
C. .Motor Cycles 6,431 4,495 22,554 20,091 71,754
19.3.Parts 6,000 4,182 23,330 28,005 78,616
19.4.Others 1,538 2,956 8,549 11,194 29,383
20.Aircrafts,Ships And Boats 6,720 12,692 82,841 51,684 238,831
21. Others Transport Equipments 1,873 2,051 10,131 5,777 28,992
PETROLEUM GROUP
22.Petroleum Products 581,876 880,010 2,760,172 1,402,724 6,177,224
23.Petroleum Crude 466,728 593,456 2,164,532 1,148,578 4,318,821
TEXTILE GROUP
24.Raw Cotton 50,639 64,101 208,389 234,083 1,101,670
25.Synthetic Fibre 29,632 33,174 121,487 70,383 265,956
26.Synthetic & Artificial Silk Yarn 18,640 19,068 81,283 80,646 259,900
27.Worn Clothing 1,888 424 4,445 2,128 7,173
28.Other Textile Items 18,749 18,272 66,749 60,813 185,957
AGRI. & OTHER CHEMICAL
29.Fertilizer Manufactured 632 63,278 141,776 217,712 718,532
30.Insecticides 8,960 6,367 30,439 27,375 94,034
31.Plastic Materials 110,935 113,799 468,372 413,838 1,237,557
32.Medicinal Products 45,632 37,513 158,805 110,790 354,233
33.Others 294,298 346,903 1,188,015 832,059 2,707,316
METAL GROUP
34.Gold 0 0 0 0 61
35.Iron And Steel Scrap 47,047 29,975 137,797 158,838 463,584
36.Iron And Steel 136,859 111,171 454,732 387,635 1,319,966
37.Aluminium Wrought & Worked 10,515 9,765 38,485 58,379 169,304
38.All Other Matals & Artificials 23,085 22,259 98,681 131,145 361,809
MISCELLANEOUS GROUP
39.Rubber Crude Incl.Synth/Reclaim 14,073 11,269 51,676 41,938 126,847
40.Rubber Tyres & Tubes 8,390 9,195 34,760 43,300 121,754
41.Wood & Cork 5,111 3,560 22,422 21,369 70,505
42.Jute 10,108 3,204 19,607 10,762 43,097
43. Paper&Paper Board & Manf. 28,971 25,228 115,446 125,547 380,731
All Others 267,361 300,895 1,135,826 893,500 3,128,180
I Total Import Payments Banks (cif) 3,205,155 3,782,916 13,302,134 9,519,845 34,090,151
II Freight & Insurance 256,412 302,633 1,064,171 761,588 2,727,212
III Import Payments Banks (fob) (I-II) 2,948,743 3,480,283 12,237,963 8,758,257 31,362,939
IV Other Imports 98,933 75,083 660,622 781,570 4,054,395
Total Import As Per Bop (III+IV) 3,047,676 3,555,366 12,898,585 9,539,827 35,417,333
Source: SBP


PAKISTAN IMPORTS BY MAJOR COUNTRIES
(Rs. million)

COUNTRIES

JUL-2008 TO JUL-2008
VALUE % SHARE
Saudi Arabia 35,685.42 14.24
UAE 34,992.84 13.97
China 30,390.86 12.13
Kuwait 22,364.08 8.93
U.S.A. 9,731.69 3.88
Germany 8,968.80 3.58
India 8,532.33 3.41
Japan 8,494.72 3.39
Malaysia 8,296.46 3.31
Iran 7,419.95 2.96
Singapore 6,184.89 2.47
Italy 4,477.90 1.79
United Kingdom 4,203.10 1.68
Thailand 3,377.88 1.35
Switzerland 2,633.39 1.05
Others 31,746.86 12.67
Source: FBS

CONCLUSION

Unfortunately, the Economic Monitoring Committee (EMC) and SBP have failed to curtail the import volume of the country as they are considering bringing down trade deficit volume. During the last five years, the Pakistan's imports have increased more than twice which is alarming for Pakistan's economy. Therefore the GoP must ban the imports of luxurious items immediately in order to decrease budget deficit. As for business purpose and good relationship with other countries, our government is organizing different programs, as one main example is Expo Pakistan exhibitions in Karachi which provides a great venue for forging new alliances and business ventures to foreign businesspersons and augurs well for structuring business relationships and investment opportunities. This type of programs will encourage the investors and businessmen to invest in our country.