ISLAMABAD: Pakistan’s food import bill grew by 53.93 per cent to $6.899 billion year-on-year during the 10 months of the current fiscal year (10MFY21) mainly due to sugar and wheat imports to bridge the shortfall in domestic production of agriculture produce.

The rising food import bill also triggered trade deficit, which would cause some uneasiness on the external side for the government in upcoming months.

Data compiled by Pakistan Bureau of Statistics (PBS) showed the share of food items in the total import bill reached 15.41pc this year, compared to 11.79pc last year, making the country dependent on imports to ensure food security.

Trade deficit is widening as the overall import bill of the country has been on the rise since November last year, mainly due to an increase in the import bill of eatables.

Import of wheat and sugar cited as major reason behind the surge

The import bill inched up by 17.79pc to $44.749bn in 10MFY21 as against $37.992bn over the corresponding period of last year.

The eatable import bill of all products posted growth in value and quantity during the period under review, a clear indication of shortage in domestic production. Within the food group import, the major contribution came from wheat, sugar, edible oil, spices, tea and pulses.

Edible oil import witnessed a substantial increase during the period under review in quantity, value and per value terms.

Import of palm oil recorded a growth of 36.44pc in value in 10MFY21 to $2.142bn from $1.57bn over the corresponding months of last year. In quantity, a growth of 6.90pc was also recorded in import of palm oil during the same period.

The prices of vegetable ghee and cooking oil posted growth during the last few months for domestic users.

The ministry of industries failed to correct the prices as production of vegetable ghee and cooking oil also dropped in nine months this year. However, import of soya bean oil increased by 35.70pc in value and 28.50pc in quantity.

Pakistan imported 3.612 million tonnes of wheat worth $983.326m in nine months of this year as against no imports last year.

In April, no wheat was imported as the government expects a bumper wheat crop this year.

The bulk import of wheat in the first nine months was made to bridge the gap between supply and demand of staple food in the market.

Similarly, import of sugar stood at 280,377 tonnes in 10 months of this year as against 5,866 tonnes over the corresponding months of last year, showing an increase of 4,308pc.

In the month of April, 773 tonnes of sugar was imported as against 1,115 tonnes of sugar over the last year, showing a decline of 30.67pc.

Import of tea posted growth of 13.64pc during 10 months of this year while that of spices increased by 33.11pc. The growth is mainly due to a drop in import of these products under transit trade and controlling of smuggling at border areas.

The import bill of pulses, dried fruits, milk and other food products witnessed a massive growth during the period under review.

Published in Dawn, May 23rd, 2021