960410

Essentials' import

bill to be higher

by $ 6,220m in 1995-96

TANVIR ZAHID

LAHORE: Pakistan is spending $6,220 million more on import of wheat, fertilizers, edible oils and POL alone to meet domestic requirements during current financial year.

According to the information available from official sources, Pakistan had incurred expenditure of $3214 million on import of these commodities during 1994-95.

This included $1732 million on import of POL, $997 million on Edible Oils, $357 million on wheat and $128 million on fertilizers.

But, for the financial year 1995-96 the figure had increased by almost three-fold to $9434 million owing to exchange rate fluctuation, following 7 percent devaluation of Pakistani Rupee in October last year, price and quantity factors.

The sources said that $4552 million were being spent on import of wheat, $2126 million on fertilizers $848 million on edible oils and $ 1908 million on POL during the current financial year.

It was pointed out that the 1995-96 federal budget had projected that the imports would increase to $11 billion, showing a growth of 9.2 percent.

Against this, total imports for first eight months, i.e. July 1995 to February 1996, had recorded an alarming increase of 17.8 percent over the corresponding period last year.

The import bill for crude oil and POL, fertilizers, insecticides, medicinal products, milk and milk food, pulses, plastic material and rubber had risen due to increase in both volumes and prices, while that of edible oils, synthetic fibre and sugar had declined solely because of fall in volumes during the first eight months of fiscal 1995-96, the sources pointed out.

Pakistan's full year estimates had placed imports at $ 10.9 billion, indicating an increase of 7.5 percent over 1994-95 and it was claimed by the sources that tempo of acceleration in imports had started slowing down since January 1996 partly because of the devaluation and partly due to imposition of 10 percent regulatory duty on all imports.