Pakistan’s oil imports have seen a dip of 73.55% year-on-year to $326.75 million in May. The current plunge is the lowest level since March when the federal government imposed a nationwide lockdown amid COVID-19 pandemic.
PBS Report:
According to the Pakistan Bureau of Statistics (PBS), total oil imports have fell 25.33pc to $9.807 billion in 11 months of Fiscal Year (FY)2020, compared to $13.135bn in the same duration last year. The department reported that imports are in a constant downward trajectory since March, when it fell by 32%, while April saw a further decline of 55%. The primary reason for this downfall is a steep reduction in domestic demand due to a nationwide shutdown.
Also Read: Government Bans Oil Imports Due To Low Demand
The PBS is yet to release data for the local production of petroleum in May. But the 10-month data has shown a significant decrease. The fall in crude oil imports has also led to lower output of petroleum products by domestic refineries.
Petroleum Products:
The report further stated that under fuel group, the import of petroleum products declined by 22.43% in quantity and 71.46% in value. While crude oil imports fell by 30.04% and 79.94%, respectively. Similarly, the imports of Liquefied Natural Gas (LNG) fell by 67.9% in value, which would have meant relatively lower power generation through this fuel. Meanwhile, the import of Liquefied Petroleum Gas (LPG) declined by 23.91% in value in May, primarily due to an increase in local production.
Impact on Economy:
The decline in the local production of petroleum products and exports from the country is likely to cause a plunge in economic growth. The oil bill import in Pakistan has also witnessed a double-digit decline during this fiscal year. Earlier this month, the country saw an oil crisis in the country. The government has accused Oil Marketing Companies (OMCs) for the shortage. Meanwhile, OMCs said the government’s ban on the import and other policies had led to this crisis.
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