20000219

Import bill likely to surge by $1.5bn this year

JAVED MEHMOOD

ISLAMABAD: Import bill of Pakistan in 1999-2000 may surge by $1.50 billion over the last fiscal year because of abnormal rise in the petroleum prices in international market, it was learnt on Friday.

Sources in the ministries of finance and commerce told Business Recorder that in 1998-99 imports closed at $9.431 billion and at the end of this fiscal import bill is expected to close to $11 billion.

Current statistics also portray $677.455 million growth in import bill in the first seven months of this financial year, confirming economic managers viewpoint of over a billion dollars increase in import bill in 1999-2000.

Surprisingly, statistics also testify $668.85 million increase in the import of petroleum group in seven months that is equal to overall increase in imports this year.

Sources said that petroleum is the only group that has deteriorated balance of trade much beyond official projection and it would further cause unnecessary burden on the import bill, foreign exchange reserves and economy during the current fiscal.Because, they said, imports of petroleum products and crude oil have increased by 97.1 percent and 99 percent respectively of value in dollars this year. For example, in January 1999, Pakistan imported petroleum products at the rate of $87.6 per tonne that surged to $172.20 in January 2000.

Crude oil was available at $82.80 per tonne, but its value shot up to $188.4 during this year.

Sources said that import of edible oil and wheat would be curtailed substantially this year, but hike in prices of petroleum products has overshadowed their negative growth.

Regarding deficit, officials said petroleum group has 70 percent share in the overall deficit in seven months of this fiscal.

In seven months deficit has reached $1.013 billion and it may end close to $1.75 billion by the end of 1999-2000. However, in 1998-99 the total trade deficit was $1.57 billion.