ISLAMABAD: Imports of the petroleum group dipped 9.27 per cent year-on-year in the July-January period of FY23 as unprecedented inflation curtailed overall demand amid an economic slowdown.

The highest-ever increase in prices led to lower consumption of petroleum products. In absolute terms, the total import value of the petroleum group fell to $10.61bn in 7MFY23 from $11.69bn over the corresponding months of last year.

Data compiled by the Pakistan Bureau of Statistics (PBS) showed the imports of petroleum products declined by 14.73pc in value during 7MFY23 and 33.74pc in quantity. Import of crude oil decreased by 13.53pc in quantity while the value increased by 10.90pc.

Similarly, liquefied natural gas (LNG) imports fell by 20.84pc in 7MFY23 on a year-on-year basis. This would have translated into relatively lower LNG-based power generation — a replacement for furnace oil. On the other hand, liquefied petroleum gas (LPG) imports jumped 8.26pc.

In January, total oil imports fell 12.42pc to $1.32bn, from $1.51bn in the same month last year.

Machinery imports dip

For many years machinery imports have been a major reason for the growing trade deficit, but it registered negative growth of 45.15pc to $3.73bn in 7MFY23 from $6.80bn in the corresponding period last year mainly due to a year-on-year decline of 61.01pc in the arrivals of telecom equipment including mobile phones.

The import of textile, office and power-generating machinery also shrank during the period.

Food is the second largest group of imports, but imports grew just 7.01pc to $3.73bn during the 7MFY23 from a year ago.

Published in Dawn, February 18th, 2023