Karachi, October 18, 2023: Pakistan’s import of petroleum products dropped by 36.55 percent during the first quarter (July-September) of fiscal year 2023-24.
According to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday, the import of petroleum products was at $1.52 billion during the first quarter of the current fiscal year as compared with $2.39 billion over the same quarter of the previous fiscal year.
Interestingly, the cost per unit for import of petroleum products declined by a massive 14.21 percent, as evident from the official data. The country imported 2.39 million metric tons of petroleum products during July-September of the fiscal year 2023-24 as compared with 3.23 million metric tons in the corresponding period of the previous fiscal year.
The total import of the petroleum group during the first quarter of the current fiscal year was $3.50 billion as compared with $4.86 billion in the same period of the last fiscal year, showing a decline of 28 percent.
The import of petroleum crude recorded a decline of 30.10 percent to $947 million during the period under review as compared with $1.36 billion in the comparing period of the previous fiscal year.
Reasons for the Decline in Petroleum Imports
There are a number of reasons for the decline in Pakistan’s petroleum imports.
Economic slowdown: The Pakistani economy has been slowing down in recent months, which has led to a decrease in demand for petroleum products.
Government measures: The Pakistani government has taken a number of measures to reduce petroleum imports, such as increasing taxes on petroleum products and reducing subsidies.
Impact of the Decline in Petroleum Imports
The decline in petroleum imports is likely to have a mixed impact on the Pakistani economy.
Positive impact: The decline in petroleum imports will lead to a decrease in the country’s import bill, which will help to improve the balance of payments. It will also help to reduce the country’s vulnerability to external shocks.
Negative impact: The decline in petroleum imports could lead to a slowdown in economic growth, as petroleum products are essential for many industries. It could also lead to job losses in the petroleum sector.
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