ISLAMABAD: Pakistan’s gold import bill soared by 107 per cent during first seven months (July – January) 2022-2023, according to data released by Pakistan Bureau of Statistics (PBS).
The country has spent Rs4.15 billion for import of gold during the first seven months of the current fiscal year as compared with Rs2 billion in the corresponding period of the last fiscal year.
The payment for gold import in dollars registered 56.48 per cent growth to $18.36 million during July – January 2022-2023 when compared with $11.73 million in the corresponding period of the last fiscal year.
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The surge in import bill may be attributed to high prices of the yellow metal in the international market. Besides, the restrictions on dollar movement in Pakistan also give rise investment in the precious metal.
In terms of quantity the import of gold fell by 2.05 per cent to 191 kilograms during first seven months of the current fiscal year as compared with 195-kg in the same period of the last fiscal year.
It may be mentioned that the government put a complete ban on import of luxurious and non-essential items in May 2022. The ban was imposed in order to support the balance of payment and to prevent the outflow of dollars.
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However, this ban was lifted in August 2022 after pressure from the International Monetary Fund (IMF) for continuation of loan program under Extended Fund Facility (EFF).
The import of gold recorded an increase of 20 per cent to $4 million in January 2023 when compared with $3.26 million in the previous month of December 2023. However, the latest monthly import of gold recorded an increase of 127 per cent when compared with $1.73 million in the same month of the last year.
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It important to note that the gold import recorded a surge when the official foreign exchange reserves of the country have fallen to an alarming level.
The official foreign exchange reserves of the central bank are at $3.192 million by the week ended February 10, 2023. The current level of the official foreign exchange reserves are only to provide import cover for about two weeks or 19 days.
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The import bill for the month of January 2023 has been recorded at $4.856 billion, as per Pakistan Bureau of Statistics (PBS). The benchmark foreign exchange reserves of a central bank should be at a level to provide three months import cover.
The official foreign exchange reserves of SBP fell sharply to an almost nine-year low. Previously, the official reserves of the SBP were seen at this level at $3.19 billion in February 2014.
