Islamabad: Pakistan’s import of petroleum products, which makes up almost one-third of its import bill, decreased by 5% to $1.26 billion in February compared to the previous month, according to official data reported on Friday.
Despite the decline, the import still accounts for almost one-third of the country’s total import bill. The decrease is attributed to a decrease in demand due to the massive depreciation of the rupee and the imposition of new taxes recommended by the International Monetary Fund.
The government has withdrawn subsidies on petroleum products and passed on the increased commodity prices in global markets to local consumers, leading to a reduction in purchasing power and a rise in the cost of doing business.
In the first eight months of the current fiscal year, commodity imports have decreased by over 8% to $11.87 billion compared to the same period of the previous year. The import of petroleum products is expected to increase again when the government gradually reopens the partially closed economy in the near future.