Imports in Pakistan increased 9.4 percent year-on-year to 372549 PKR Million in July of 2016. Imports in Pakistan averaged 65241.68 PKR Million from 1957 until 2016, reaching an all-time high of 472228 PKR Million in August of 2014 and a record low of 96 PKR Million in April of 1959. Imports in Pakistan is reported by the Pakistan Bureau of Statistics. Here are the Top 10 reasons why import in Pakistan is increasing.
Top 10 reasons:
- Rise in import inclined in 2016 at the time of low petroleum import bill. The import of Liquefied Petroleum Gas (LPG) during past seven months has reached 286,000 tons, which is likely to touch 500,000 tons showing a 100 percent increase due to reduced international prices.
- Higher food products imports, namely milk, due to record low prices.
- Due to the gas shortage, Pakistan imported a total 62,000 tons of LPG which in the year 2015 jumped to 145,000 tons and in first six months of 2016 the import of commodity had reached 286,000 tons which by the end of the year was likely to cross 500,000 tons.
- All the recent negative developments have led to falling in foreign exchange reserves of over $400 million in the last six weeks, leading to increase in import.
- Export business has declined, leading to more needs and requirements from import products.
- Most of the transportation equipment are imported because of low productivity in country’s industries, leading to a high-level increase in Import.
- With Pakistan’s cotton sowing remaining 25 percent lower this year compared to the last year, its cotton production likely to face a shortage of around 2.5 million cotton bales during the current year, leading to increase in the import of cotton.
- The government had increased duty on wheat imports from 25 percent to 40 percent, but it had failed to deter the importers, leading to no benefit but increase in import.
- Due to increase in population, the demand of the people is on the rise, as a developing country, Pakistan’s export is not enough.
- The high increase in import is leading to less demand for rupees and decrease in export.
In the recently announced budget for 2016-17, the Finance Ministry gave some incentives of rebate and zero-rated sales tax to top five important textile sectors to enhance exports in the next two years. Let’s hope if it’ll lead to decrease in Import or not.