Annual-Analytical-Report-on-Trade-Statistics-of-Pakistan-FY2023-24-2.pdf

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64 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y Table 55: Pakistan’s Energy Imports Energy Products EXPORT VALUE (MILLION US$) FY 2024 FY 2023 % Change TOTAL ENERGY IMPORTS 16,910 17,015 -0.6 PETROLEUM PRODUCTS 6,644 7,628 -12.9 PETROLEUM CRUDE 5,531 4,947 11.8 NATURAL GAS LIQUIFIED (LNG) 3,946 3,764 4.8 PETROLEUM GAS LIQUIFIED (LPG) 789 675 16.9 OTHERS 0.2 0.3 -36.0 Machinery Imports – Vital for Industrial Growth Machinery imports, particularly for the power, construction, and textile industries, remained crucial for Pakistan’s economic growth. In FY 2024, machinery imports accounted for around 15.5 percent of the total import bill. Despite economic constraints, Pakistan continued to import essential machinery, especially for the development of infrastructure and energy projects. While textile and power generating machinery imports declined by 54.5 percent and 16.5 percent, reflecting slower demand from the textile and power sector. Electrical, agriculture and construction machinery imports rose by 95.7 percent, 122.9 percent and 11.2 percent respectively, highlighting continued investment in Pakistan’s infrastructure and energy sectors. Table 56: Pakistan’s Machinery Imports MACHINERY CATEGORY IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE TOTAL MACHINERY IMPORTS 6,732 5,376 25.2 ELECTRICAL MACHINERY & APPA­ RATUS 3,275 1,674 95.7 TELECOM APPARATUS OTHER THAN MOBILE PHONES 468 387 20.9 OFFICE MACHINES 459 339 35.3 POWER GENERATING MACHINERY 418 500 -16.5 TEXTILE MACHINERY 149 328 -54.5 AIRCRAFTS, SHIPS AND BOATS 130 134 -3.3 CONSTRUCTION & MINING MACHINERY 94 85 11.2 AGRICULTURAL MACHINERY 91 41 122.9 OTHER MACHINERY 1,647 1,887 -12.7 Consumer Goods Imports – An Increasing Trend Phone imports in Pakistan surged by 233.1 percent during FY2024, reaching US$ 1,899 million, compared to US$ 570 million during the same period the previous year. This significant increase was driven by the lifting of import restrictions and the appreciation of the Pakistani Rupee since September 2023, creating a favourable environment for higher mobile phone imports. The import of road motor vehicles elevated by 5.3 percent, with Completely Built Units (CBU) rising by 89.6 percent, while Completely Knocked Down/Semi Knocked Down (CKD/SKD) imports fell by 6.2 percent. Table 57: Pakistan’s Consumer Goods Imports CONSUMERS' GOODS CATEGORY IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE TOTAL CONSUMER GOODS 3,546 2,134 66.2 MOBILE PHONE 1,899 570 233.1 ROAD MOTOR VEHICLE 1,647 1,564 5.3 COMPLETE BUILT-IN UNIT (CBU) 344 181 89.6 COMPLETE KNOCKED DOWN / 0.2 0.3 -36.0 SEMI KNOCKED DOWN
1,009 1,076 -6.2 Raw Materials Imports– Essential for Pakistan’s Manufacturing Sector Raw materials such as chemicals, fertilizers, and metals are essential to Pakistan’s manufacturing sector. In FY 2024, these imports comprised nearly 27.8 percent of the total import bill. Despite efforts to cut down on imports, the country maintained a steady flow of these vital materials to support both its industrial and agricultural sectors. These critical imports ensure the smooth functioning of key industries, making them indispensable for maintaining productivity and economic stability. As Pakistan navigates economic challenges, the continued import of essential raw materials remains a priority for sustaining growth in these sectors. Imports of fertilizers saw a rise of 13.3 percent respectively, driven by increased demand in the agricultural sectors. The agricultural sector’s growing need for fertilizers to support crop production and boost yields contributed to this uptick. Similarly, industrial chemicals, essential for various manufacturing processes, experienced higher demand as industries sought to meet production targets. In contrast, imports of iron and steel experienced a slight decline, which can be attributed to a slowdown in construction activities and a reduction in industrial output. The decrease in construction projects, possibly due to economic factors or shifting investment priorities, reduced the need for these key materials. This decline also reflects a broader softening in the industrial sector, which has seen less activity, potentially linked to challenges in both domestic and international markets. Despite the drop-in iron and steel imports,

Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 65 SECTION-2 2024 the increase in fertilizers and chemicals highlights the resilience of certain sectors, particularly agriculture and manufacturing, which remain critical drivers of economic activity. Table 58: Pakistan’s Raw Material Imports RAW MATRIALS IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE TOTAL 15,248 16,666 -8.5 RAW COTTON 448 1,679 -73.3 SYNTHETIC FIBRE 494 485 1.9 SILK YARN 605 583 3.8 FERTILIZER 685 604 13.3 INSECTICIDES 196 205 -4.1 PLASTIC MATERIALS 2,271 2,273 -0.1 MEDICINAL PRODUCT 1,087 1,329 -18.2 OTHER CHEMICAL 4,270 4,517 -5.5 IRON AND STEEL SCRAP 1,230 1,152 6.8 IRON AND STEEL 2,043 1,890 8.1 ALUMINIUM 174 230 -24.4 RUBBER 355 302 17.6 ALL OTHER METAL 852 849 0.3 WOOD & CORK 106 84 25.9 JUTE 25 58 -57.5 PAPER 408 426 -4.0 Food Imports – Decreasing Because of Domestic Production Despite being an agricultural country, Pakistan remains a net importer of certain food products, particularly wheat, sugar, and edible oils. The food group, which accounted for 14.4 percent of total imports, saw a decline of 11.6 percent during FY 2024, with imports amounting to US$ 7,903.7 million compared to US$ 8,940.0 million in the same period last year. Despite the overall decrease, certain items within the food group experienced significant growth. Notably, imports of dry fruits, tea, and spices surged. Dry fruit imports rose sharply by 77.5 percent, reaching US$ 70.9 million, largely due to reduced import duties on Afghan dry fruits. Edible oil imports (soybeans and palm) remained substantial but dropped in both quantity (5.6 percent) and value (26.5 percent), primarily due to lower global prices. Similarly, the import bill for pulses decreased in both quantity (11.4 percent) and value (18.1 percent) for the same reason. Table 59: Pakistan’s Food Product Imports FOOD CATE­ GORY IMPORT VALUE (MILLION US$) EXPORT QUANTITY (MT) FY 2024 FY 2023 % CHANGE FY 2024 FY 2023 % CHANGE TOTAL 7,904 8,937 -11.6

PALM OIL 2,779 3,641 -23.7 2,996,668 3,074,776 -2.5 WHEAT 1,032 1,072 -3.8 3,536,237 2,729,238 29.6 PULSES 775 946 -18.1 1,166,505 1,315,919 -11.4 TEA 657 569 15.4 259,652 231,597 12.1 SPICES 196 151 29.8 169,079 147,287 14.8 SOY­ ABEAN OIL 130 316 -58.9 119,845 227,388 -47.3 MILK AND CREAM 114 144 -20.9 32,978 41,448 -20.4 DRY FRUITS & NUTS 71 40 77.5 102,606 58,340 75.9 SUGAR 3 6 -41.0 3,486 6,207 -43.8 OTHERS FOOD ITEMS 2,148 2,052 4.7

2.1.  Pakistan’s Import Sources During FY 2024 FY 2024, Pakistan’s import landscape remained diverse, with the country sourcing goods from various global partners. The composition of Pakistan’s imports by country was influenced by several factors, including trade agreements, diplomatic relationships, and the nature of goods required to meet domestic demands. China remained Pakistan’s largest trading partner, contributing 27.03 percent of total imports (US$14.8 billion), a significant 24.6 percent increase from FY 2023. Conversely, imports from the United Arab Emirates saw a notable decline of 12.4 percent, dropping to US$5.04 billion, representing 9.2 percent of total imports. Other key contributors included Saudi Arabia and Qatar, with imports valued at US$4.79 billion (11.4 percent growth) and US$3.6 billion (0.4 percent growth), respectively. Imports from some partners displayed mixed trends. While Indonesia experienced a sharp decline of 22.1 percent, with imports falling to US$3.35 billion, Singapore registered the highest growth at 32.2 percent, reaching US$1.29 billion. The United States recorded the steepest drop, with imports decreasing by 34.6 percent to US$1.43 billion. Notable increases were also observed with Iran (16.3 percent) and Kenya (22.6 percent), while other countries like Kuwait (-4.2 percent), Thailand (-18.3 percent), and Morocco (-9.8 percent) saw declines.

66 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y Table 60: Top 20 Pakistan’s Imports Sources COUNTRY FY 2024 FY 2023 % CHANGE VALUE (Million US$) % SHARE VALUE (Million US$) % SHARE TOTAL IMPORTS 54,779 100 55,198 100 -0.8 China 14,806 27.03 11,880 21.52 24.6 United Arab Emirates 5,037 9.2 5,751 10.42 -12.4 Saudi Arabia 4,792 8.75 4,303 7.8 11.4 Qatar 3,599 6.57 3,585 6.5 0.4 Indonesia 3,350 6.12 4,299 7.79 -22.1 Kuwait 2,114 3.86 2,206 4 -4.2 U.S. Amer­ ica 1,433 2.62 2,189 3.97 -34.6 Singapore 1,285 2.35 972 1.76 32.2 Japan 1,154 2.11 1,061 1.92 8.8 Iran 1,042 1.9 896 1.62 16.3 South Korea 940 1.72 847 1.53 11 Malaysia 898 1.64 886 1.6 1.4 Oman 895 1.63 835 1.51 7.2 Russian Federation 879 1.6 841 1.52 4.5 Australia 843 1.54 801 1.45 5.2 Thailand 824 1.5 1,009 1.83 -18.3 Germany 756 1.38 774 1.4 -2.4 Morocco 665 1.21 737 1.34 -9.8 United Kingdom 580 1.06 558 1.01 4.1 Kenya 577 1.05 471 0.85 22.6 Others 8,310 15.17 10,297 18.65 -19.3 2.1.1.  China: Pakistan’s Largest Import Part­ ner Table 61: Top Commodities Imported from China Commodity IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE TOTAL IMPORT FROM CHINA 14,806 11,880 24.6 Electrical Machinery & Apparatus 2,925 1,317 122.2 Mobile Phone 1,742 488 256.8 Iron & Steel 1,426 1,091 30.7 Plastic Materials 618 510 21.1 Synthetic & Artificial Silk Yarn 517 475 8.8 Medicinal Products 264 276 -4.2 Office Machine 257 176 46.5 Power Generating Machine 256 269 -5 Paper & Paper Board 212 169 24.9 Motor Cars (CKD/SKD) 189 112 68.3 Fertilizers Manufactured 150 225 -33.3 Synthetic Fibre 136 163 -16.6 Parts & Accessories of vehicles 111 102 8.5 Aluminium wrought 109 134 -18.6 China maintained its position as Pakistan’s largest import source during FY 2024, accounting for 27.0 percent of total imports. With a rise in imports from China (24.6 percent), the country remains a crucial partner for Pakistan, especially for machinery, electronics, and chemicals. The long-standing China-Pakistan Economic Corridor (CPEC) projects have also fostered strong trade ties between the two nations. China remains Pakistan’s primary source for machinery and electrical equipment, which is essential for its industrial and construction sectors. Chemical imports from China saw an increase, highlighting their importance in mobile phones, pharmaceutical and industrial sectors. 2.1.2.  Arab Emirates (UAE): A Key Energy Supplier The UAE was the second-largest import source for Pakistan during FY 2024, largely due to its role as a major supplier of petroleum products. Pakistan imported crude oil, refined petroleum, metal and plastic from the UAE, contributing to a 9.2 percent in overall imports from the region. Table 62: Top Commodities Imported from UAE Commodity IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE TOTAL IMPORT FROM UAE 5,037 5,751 -12.4 Petroleum Products 2,250 3,130 -28.1 Petroleum Crude 1,702 1,794 -5.1 Iron & steel Scrap 351 142 147.3 Plastic Materials 325 294 10.4 Iron & Steel 40 22 86.5 2.1.3.  United States: A Diverse Import Part­ ner Pakistan’s imports from the United States shrunk by 34.6 percent during FY 2024, driven by a wide range of products including machinery, agricultural products, and pharmaceuticals. The U.S. is a key partner for Pakistan in terms of high-value imports like aircraft, machinery, and medical equipment. The increase in machinery and pharmaceutical imports underscores the U.S.’s role as a supplier of advanced technology and medical products. Table 63: Top Commodities Imported from USA Commodity IMPORT VALUE (MILLION US$) FY 2024 FY 2023 % CHANGE TOTAL IMPORT FROM USA 1,433 2,189 -34.6 Worn Clothing 209 182 14.7 Raw Cotton 181 571 -68.3 Medicinal Products 88 213 -58.8 Iron & steel Scrap 84 208 -59.3 Petroleum Products 81 28 185.9 Liquefied Natural Gas (LNG) 59

Office Machine 54 48 11.7 Electrical Machinery & Apparatus 40 33 20.2 Plastic Materials 38 49 -22.7 Power Generating Machine 32 41 -22.3