Islamabad, February 19, 2024 – Pakistan’s petroleum import bill has witnessed a significant 12 percent decline during the first seven months (July – January) of the fiscal year 2023-24, according to data released by the authorities.
The decrease reflects a positive trend in the country’s energy import dynamics, indicating potential cost savings and improved economic stability.
The total imports of the petroleum group from July to January in the fiscal year 2023-24 amounted to $9,332.322 million, compared to $10,611.727 million during the same period in the previous fiscal year. This reduction is primarily attributed to notable decreases in the import values of petroleum products and crude oil.
Among the various petroleum commodities, the import of petroleum products experienced the most substantial decline, plummeting by 25.94 percent from $4,889.799 million in the corresponding period last year to $3,621.420 million during the current fiscal year. Similarly, the import of petroleum crude saw a decrease of 3.96 percent, declining from $3,100.481 million to $2,977.671 million.
Contrastingly, the imports of Liquefied Natural Gas (LNG) exhibited a positive trend, increasing by 4.82 percent from $2,192.489 million in the previous fiscal year to $2,298.144 million in the current fiscal year. Additionally, the import of Liquefied Petroleum Gas (LPG) rose by 1.47 percent during the first seven months, reaching $434.991 million as compared to $428.687 million in the corresponding period of 2022-23.
Examining the month of January 2024 on a year-on-year basis, the petroleum group imports demonstrated a marginal increase of 0.03 percent compared to the same month in the previous year. The import value rose from $1,326.205 million in January 2023 to $1,326.540 million in January 2024.
However, on a month-on-month basis, the data reveals a 14.52 percent decrease in petroleum imports during January 2024 compared to December 2023. The import value dropped from $1,551.870 million in December 2023 to $1,326.540 million in January 2024.
The decline in the petroleum import bill is likely to have positive implications for Pakistan’s trade balance, as reduced import costs contribute to a more favorable economic outlook. It also reflects the country’s efforts to diversify its energy sources and optimize its energy mix to achieve greater sustainability and economic resilience.
As Pakistan continues to navigate economic challenges, the decline in the petroleum import bill serves as a positive indicator, fostering optimism for improved economic conditions and a more stable energy landscape in the future. The government and relevant authorities will closely monitor these trends, aiming to leverage the positive momentum for sustained economic growth.
