Non-oil imports up 85 percent to $30 billion in 2015/16

KARACHI: Non-oil imports jumped 85 percent to $30 billion during the last fiscal year of 2015/16, but soft oil prices helped the government contain its petroleum products’ imports bill during the period.

Imports of petroleum products and crude dropped 35.51 percent to $7.606 billion during the last fiscal year, the Pakistan Bureau of Statistics (PBS) data showed on Thursday. The decline was much beyond 3.57 percent fall in imports of agricultural products and chemicals. 

International oil prices sharply dipped up to 50 percent in the last fiscal year, saving three to four billion dollars for the country.   

Imports of machinery group, however, surged 15.95 percent to $8.599 billion in the last fiscal year, accounting for almost one-fourth of the total imports of $45.826 billion in the year. Only energy machinery imports amounted to $3.6 billion. Power generation machinery imports rose 33.67 percent to $1.838 billion in FY16, while imports of electric equipment and appliances climbed 49.87 percent to $1.806 billion. 

The demand of machineries escalated in the wake of ongoing development of the China-Pakistan Economic Corridor projects. Even China contributed almost half of the total foreign direct investment during the last fiscal year. The investments and imports were mostly made to set up power plants. 

The Chinese factor will continue to play a catalyst role in the country’s import and militate against the benefits accruing from oil drop.  

The PBS data further showed that mobile phone and other telecom-related import bill, however, inched down 0.86 percent to $1.365 billion. 

Food group imports increased 7.18 percent to $5.389 billion. Car, motorcycle and other transport-related imports rose 10.15 percent to $2.973 billion. Of total textile imports of $3.146 billion, the major percentage jump was witnessed in raw cotton imports, up 118 percent to $750.593 million.

In July-June 2015/16, all the main exports fell. 

Textile exports, which fetch more than half of the export revenue, decreased 7.42 percent to $12.455 billion. From cotton yarn and cotton cloth to knitwear and bed wear, the exports revenue from all the major foreign exchange spinners continued to drop during the last fiscal year. 

Readymade garments, however, continued to recoup the shrinking market share of the local textiles in the international markets. The garments export rose 4.83 percent to $2.196 billion.

Food exports slid 12.56 percent to $3.990 billion in FY16. Rice earned the country $1.860 billion, down 8.6 percent. Exports from leather sector slipped 11.85 percent to $526 million. Footwear exports stepped back 16.68 percent to $109.604 million. Engineering goods fetched $189.778 million, down 15.34 percent. 

The PBS data showed that exports of crude and other petroleum products slumped 72.56 percent to $160.701 million.  

The exports basket of the country holds a limited number of items with the country relying on textile and agriculture non-value added products to earn foreign exchange. 

All the trade policies have abysmally failed to expand the size of the exports basket as well as explore other export destinations. The interplay of value-addition, diversification and market expansion can only restrain the falling exports revenue and rejuvenate the exporting sectors.