Islamabad, June 16, 2023 – The import bill for Pakistan’s petroleum group has experienced a significant decline of 22% due to falling international oil prices and reduced domestic demand.
According to the Pakistan Bureau of Statistics (PBS), the country imported petroleum products worth $15.38 billion during the 11-month period from July to May of the fiscal year 2022-2023, compared to $19.70 billion in the corresponding period of the previous fiscal year.
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Energy experts attribute this substantial decrease in the import bill to the sharp decline in international oil prices and the significant reduction in local demand for petroleum products. The lower prices in the international market have played a crucial role in reducing Pakistan’s energy bill.
The PBS report reveals that the import of petroleum products saw a significant decline of 33% to $6.75 billion during July to May 2022-2023, compared to $10 billion in the same period of the previous fiscal year.
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Despite the lower prices, the import of crude oil experienced a relatively modest decline of only 5% to $4.52 billion during the first 11 months of the current fiscal year, compared to $4.76 billion in the same months of the previous fiscal year.
The import of Liquefied Natural Gas (LNG) recorded a decline of 19% to $3.47 billion during the period under review, compared to $4.29 billion in the corresponding period of the last fiscal year.
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On the other hand, the import of Liquefied Petroleum Gas (LPG) witnessed an increase of 5.4% to $640 million during the first eleven months of the current fiscal year, compared to $606 million in the same period of the previous fiscal year.
The decline in the petroleum import bill is a positive development for Pakistan’s economy as it helps in reducing the country’s import expenditure and improving its trade balance. The lower prices and reduced demand for petroleum products have contributed to this favorable trend. However, it is important for Pakistan to continue monitoring global oil prices and effectively manage domestic energy consumption to ensure long-term sustainability and economic stability.
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