Pakistan’s imports are driven by flashy cars, expensive smartphones thumbnail

Pakistan’s imports are driven by flashy cars, expensive smartphones

Pakistan’s trade deficit increased to Rs25.5 billion during the last five months of the fiscal year 2022. According to the data released by the Pakistan Bureau of Statistics, total imports rose to $40.52 billion, double the exports.

A trade deficit means that we are paying more on goods and services we are buying from the world than what we are earning by selling our products and services to them.

The bulk bill was blamed on to import of petroleum products which amounted to more than $10 billion, followed by machinery $5.91 billion, and food items worth $4.79 billion.

Pakistan imported 10% more petroleum products during this time, while imports of food items increased by 23%. These include tea talons, spices, palm oil, sugar, and pulses.

Imports of agricultural supplements, pesticides, and fertilisers increased by 96%, the PBS data revealed, adding that $5.91 billion were spent on machinery.

Pakistan imported a huge number of mobile phones during this period as well. Smartphones worth Rs1 billion were imported from July to December 2021 — 39% more than the previous year.

Additionally, vehicles worth $2.32 billion came into Pakistan. This includes nearly 43% of cars.

Other imports include textiles worth $2.39 million, and iron, gold, and steel worth $3.4 billion. 

A trade deficit means that we are paying more on goods and services we are buying from the world than what we are earning by selling our products and services to them.

Economists say the unavailability of containers in the international market and rising shipping costs were also among the reasons for the rising imports bill. The cost of the container has increased to $10,000 from $3,000.

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