Pakistan's Petroleum Imports Drop by 27% in FY23, Contributing to Narrowing Trade Deficit

 

Pakistan's petroleum group imports experienced a significant decline of 27.03% during the fiscal year 2022-23 (FY23), reaching $17.014 billion compared to $23.318 billion in the previous fiscal year, as reported by the Pakistan Bureau of Statistics (PBS).

In June 2023, petroleum group imports amounted to $1.632 billion, indicating a 15.95% growth compared to May's figure of $1.407 billion. 

However, when compared to June 2022's value of $3.639 billion, the petroleum group saw a negative growth of 55.15% on a year-on-year (YoY) basis.

Furthermore, petroleum products imports witnessed a substantial decline of 36.80% during FY23, totaling $7.628 billion in contrast to $12.069 billion in the same period of the previous year. In June 2023, petroleum product imports stood at $880.250 million, representing a remarkable growth of 46.93% compared to May 2023. Nonetheless, on a YoY basis, the import of petroleum products recorded a negative growth of 57% compared to June 2022's value of $2.046 billion.

Overall, Pakistan's imports during July-June FY23 amounted to $55.330 billion (provisional), reflecting a 30.95% decrease compared to the corresponding period in the previous year, which was $80.136 billion.

Machinery group imports exhibited a negative growth of 4.82% during FY23, totaling $5.807 billion compared to $10.920 billion in the previous year. Similarly, food group imports witnessed a slight decrease of 0.88% during the period under review, reaching $8.936 billion in contrast to $9.016 billion in the same period last year.

Consequently, Pakistan's trade deficit narrowed significantly by 42.93% to $27.595 billion during FY23, as compared to $48.354 billion in the same period of the previous year.

In terms of specific imports in June 2023, the main commodities were petroleum products (Rs. 252,266 million), petroleum crude (Rs. 121,700 million), natural gas, liquefied (Rs. 83,661 million), palm oil (Rs. 71,423 million), plastic materials (Rs. 53,408 million), iron & steel (Rs. 47,081 million), electric machinery & apparatus (Rs. 33,672 million), medicinal products (Rs. 27,192 million), iron & steel scrap (Rs. 17,361 million), and pulses (leguminous vegetables) (Rs. 16,770 million).

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