Macro Economics

Assignment

Submitted By

Adeel Ahmad BBHM-F19-033

Ahmad Mubarak BBHM-F19-030

Zabiullah BBHM-F19-033

Waleed BBHM-F19-018

Salman BBHM-F19-051

Submitted to

Sir Saad Salman

Topic:

Major Imports of Pakistan

RUBBER:

The value of imports of commodity group 40 "Rubber and articles thereof" to Pakistan totaled $ 389
million in 2019. Sales of commodity group 40 to Pakistan decreased by 28% in value terms compared to
2018.imports of commodity group 40 "Rubber and articles thereof" decreased by $ 152 million (the
value of imports of commodity group 40 to Pakistan was equal to $541 million in 2018)

Imports of commodity group 40 "Rubber and articles thereof" accounted for 0.777% of total import flow
to Pakistan (in 2019, total imports to Pakistan amounted to $ 50 billion). The share of commodity group
40 in total imports to Pakistan decreased by 0.122 p.p. compared to 2018 (it was 0.9% in 2018 and
cumulative imports to Pakistan were equal to $ 60 billion).

Countries where from import of rubber in Pakistan:

 China with a share of 27% (107 million US$)

 Thailand with a share of 9.96% (38 million US$)
 Indonesia with a share of 8.97% (34 million US$)
 India with a share of 5.76% (22 million US$)
 Russia with a share of 5.45% (21 million US$)
 Malaysia with a share of 5.42% (21 million US$)
 Japan with a share of 4.71% (18.3 million US$)
 Korea with a share of 4.08% (15.8 million US$)
 Vietnam with a share of 3.82% (14.8 million US$)
 USA with a share of 2.49% (9.7 million US$)

Inorganic Chemicals
The value of imports of commodity group 28 "Inorganic chemicals; organic or inorganic
compounds of precious metals, of rare earth metals, of radioactive elements or of isotopes"
to Pakistan totaled $ 523 million in 2019. Sales of commodity group 28 to Pakistan
decreased by 1.1% in value terms compared to 2018.imports of commodity group 28
"Inorganic chemicals; organic or inorganic compounds of precious metals, of rare earth
metals, of radioactive elements or of isotopes" decreased by $ 5.82 million (the value of
imports of commodity group 28 to Pakistan was equal to $529 million in 2018).
Imports of commodity group 28 "Inorganic chemicals; organic or inorganic compounds of
precious metals, of rare earth metals, of radioactive elements or of isotopes" accounted for
1.04% of total import flow to Pakistan (in 2019, total imports to Pakistan amounted to $ 50
billion). The share of commodity group 28 in total imports to Pakistan increased by 0.166 p.p.
compared to 2018 (it was 0.879% in 2018 and cumulative imports to Pakistan were equal to $
60 billion).

From where Pakistan import Inorganic chemicals:

 Morocco with a share of 53% (279 million US$)

 China with a share of 26% (140 million US$)
 Germany with a share of 3.05% (16 million US$)
 India with a share of 2.45% (12.8 million US$)
 Korea with a share of 2.02% (10.6 million US$)
 United Arab Emirates with a share of 1.46% (7.66 million US$)
 Thailand with a share of 1.01% (5.33 million US$)
 Turkey - 5.17 million US$
 USA - 5.16 million US$
 Other Asia, net - 4.27 million US$

COAL:
The value of imports of commodity group 2701 "Coal; briquettes, ovoid and similar solid fuels
manufactured from coal." to Pakistan totaled $ 1.38 billion in 2019. Sales of commodity group
2701 to Pakistan decreased by 14.7% in value terms compared to 2018.imports of commodity
group 2701 "Coal; briquettes, ovoid and similar solid fuels manufactured from coal." decreased
by $ 238 million (the value of imports of commodity group 2701 to Pakistan was equal to $1.61
billion in 2018)

Imports of commodity group 2701 "Coal; briquettes, ovoid and similar solid fuels manufactured
from coal." accounted for 2.75% of total import flow to Pakistan (in 2019, total imports to
Pakistan amounted to $ 50 billion). The share of commodity group 2701 in total imports to
Pakistan increased by 0.067 p.p. compared to 2018 (it was 2.69% in 2018 and cumulative
imports to Pakistan were equal to $ 60 billion).

Imports of commodity group 2701 reached 9.59% of total imports of group "" to Pakistan in
2019 (imports of commodity group to Pakistan totaled $14.3 billion in 2019). The share of
purchases of commodity group 2701 in total imports of commodity group to Pakistan increased
by 0.16 p.p. compared to 2018 (it was 9.43% in 2018, and imports of commodity group to
Pakistan accounted for $17.1 billion).

From where Pakistan import coal:

 South Africa with a share of 75% (1.04 billion US$)

 Indonesia with a share of 16.4% (227 million US$)
 Afghanistan with a share of 6.59% (91 million US$)
 Russia - 4.8 million US$
 Mozambique - 4.57 million US$
 Canada - 3.39 million US$
 China - 1.97 million US$
 Iran - 921 thousand US$
 Egypt - 668 thousand US$
 United Kingdom - 126 thousand US$

FERTILIZERS:
Fertilizer demand in Pakistan increased dramatically during the last twenty years. The
consumption of urea increased from 541(000 tones) in 1990-91 to 1525 (000 tones) in
2009-10. The demand of DAP fertilizer increased from 499 (000 tones) in 1990-91 to
1080 (000 tones). The import of NP in 1990-91 was 83 (000
International Journal of Management Sciences and Business Research, Dec-2016 ISSN
(2226-8235) Vol-5, Issue 12 http://www.ijmsbr.com Page 117 tones) but in 2009-10
there is no import of NP. The demand of NP is fulfilling by production units of Pakistan.
There is an increase 0.98 million tons in the import of urea from 1990 to 2010. There is
also increase in import of DAP fertilizer that is 0.581 million tons from 1990 to 2010.
Import figure of urea shows that there is a shortage in production of urea in Pakistan
that is used to import. And the import of DAP is less because DAP is produced on a large
scale in Pakistan. In 2010, there is no import of NP and CAN fertilizers (National
Fertilizer Development Centre).

CARS:

The value of imports of commodity group 87 "Vehicles other than railway or tramway
rolling stock, and parts and accessories thereof" to Pakistan totaled $ 1.46 billion in
2019. Sales of commodity group 87 to Pakistan decreased by 43% in value terms
compared to 2018.imports of commodity group 87 "Vehicles other than railway or
tramway rolling stock, and parts and accessories thereof" decreased by $ 1.13 billion
(the value of imports of commodity group 87 to Pakistan was equal to $2.59 billion in
2018)
 Imports of commodity group 87 "Vehicles other than railway or tramway rolling stock,
and parts and accessories thereof" accounted for 2.93% of total import flow to Pakistan
(in 2019, total imports to Pakistan amounted to $ 50 billion). The share of commodity
group 87 in total imports to Pakistan decreased by 1.38 p.p. compared to 2018 (it was
4.31% in 2018 and cumulative imports to Pakistan were equal to $ 60 billion).

From where Pakistan import cars:

 Japan with a share of 35% (521 million US$)

 Thailand with a share of 25% (370 million US$)
 China with a share of 19.6% (287 million US$)
 Indonesia with a share of 7.67% (112 million US$)
 Korea with a share of 3.97% (58 million US$)
 Belarus with a share of 1.24% (18.2 million US$)
 Germany with a share of 1.19% (17.5 million US$)
 Malaysia with a share of 1.11% (16.3 million US$)
 Philippines with a share of 1.04% (15.3 million US$)
 USA - 7.11 million US$

Tea Imports into Pakistan

Since the 1820s, tea has remained the most-favored beverage in the subcontinent.
Presently, it is one the things common among the denizens of both Pakistan and India.

From breakfast to supper, tea is an incumbent item. The beverage’s popularity in

Pakistan has statistical evidence. However, statistics reveal one more thing that does
not bode well for the economy. Despite its popularity, tea is mostly imported instead of
being cultivated locally.

As per the data of Pakistan Bureau of Statistics, Pakistan is the third largest importer of
tea in the world. It spends around Rs. 54 billion annually on the beverage.

Below are the top 15 suppliers from which Pakistan imported the highest dollar value
worth of tea during 2018. Within parenthesis is the percentage change in value for each
supplying country since 2014.

1. Kenya: US$440.9 million (up 89.3% from 2014)

 2. Rwanda: $42.7 million (up 125.6%)
3. India: $24.2 million (down -0.4%)
4. Burundi: $13.3 million (up 24.2%)
5. Vietnam: $12.5 million (up 26.6%)
6. Tanzania: $10.8 million (up 86.4%)
7. Uganda: $10.3 million (up 95.7%)
8. Indonesia: $5.1 million (down -37.6%)
9. China: $3.8 million (up 10.9%)
10. Malawi: $3.1 million (up 2.5%)
11. United Arab Emirates: $2 million (up 1133.8%)
12. Bangladesh: $917,000 (down -65%)
13. Ethiopia: $914,000 (down -55.4%)
14. Argentina: $410,000 (no 2014 data)
15. Sri Lanka: $185,000 (down -52.8%)

The listed 15 countries shipped 99.9% of all Pakistani tea imports in 2018.

Three countries grew their supplies of tea to Pakistan since 2014: United Arab Emirates
(up 1,134%), Rwanda (up 125.6%) and Uganda (up 95.7%).

Countries that experienced declines in the value of their tea supplies to Pakistani
importers included: Bangladesh (down -65%), Ethiopia (down -55.4%), Sri Lanka (down
-52.8%) and Indonesia (down -37.6%).

Overall, the value of Pakistani tea imports rose by an average 74% from all supplying
countries since 2014 when tea purchases were valued at $328.3 million.

Pakistan import petroleum and oil

Pakistan imports crude oil maximum from United Arab Emirates, followed by Saudi Arabia and
Qatar. Here are trade figures of these countries recorded in the year 2016.

Pakistan imports oil because it doesn't have nearly enough oil to supply its own needs. ... So the
bottom line is that Pakistan has very small oil reserves, is severely deficient in producing oil and
refined products, and has to import most of its crude oil and products from other countries.

According to the data gathered in 2016, Kuwait exported just under a billion usd worth of
refined petroleum to Pakistan in a year. ... Pakistan imports crude oil maximum from United
Arab Emirates, followed by Saudi Arabia and Qatar. Here are trade figures of these countries
recorded in the year 2016.

Petroleum: Petroleum Products data was reported at 51,265.000 PKR mn in Mar 2020. This
records a decrease from the previous number of 97,180.000 PKR mn for Feb 2020. Pakistan’s
Imports: Petroleum: Petroleum Products data is updated monthly, averaging 40,180.000 PKR
mn from Sep 1999 to Mar 2020, with 247 observations. The data reached an all-time high of
106,630.000 PKR mn in May 2011 and a record low of 4,726.000 PKR mn in Sep 2003. Pakistan’s
Imports: Petroleum: Petroleum Products data remains active status in CEIC and is reported by
Pakistan Bureau of Statistics. The data is categorized under Global Database’s Pakistan – Table
PK.JA001: Trade Statistics: PKR.

Pakistan oil import bill

Pakistan’s oil import bill went up to $13.14 billion during eleven months (July to May) of the
ongoing fiscal year.

The country’s oil import bill has gone up by 1.6 percent to $13.14 billion during July to May
period of the year 2018-19. However, Pakistan’s overall imports have declined by 8.5 percent
due to the government’s policies. The country has imported goods worth of $50.5 billion during
July to May period of the year 2018-2019 as against $55.14 billion in the same period of last
year.
According to Pakistan Bureau of Statistics (PBS), the import of petroleum products was
recorded at $5.6 billion, petroleum crude at $4.19 billion and natural gas liquefied at $3.05
billion and petroleum gas liquefied at $239 million. Oil import bill is the major component of
the overall import bill, which declined the country’s foreign exchange reserves. However, the
country had already finalized defer oil payment facility with Saudi Arabia and Islamic
Development Bank to avert pressure on foreign exchange reserves. The oil facility provided by
Saudi Arabia worth $3.2 billion per year for three years would become operational on July 1.
Similarly, the Islamic Development Bank had also provided $1.2 billion deferred oil facility to

Pakistan is the 25th largest importer of crude oil in the world.

At present, Pakistan is importing oil from Gulf Arab countries and other countries including the
United Arab Emirates (UAE), Kuwait and Saudi Arabia. To meet gas needs, Qatar.

Top imports are Refined Petroleum ($5.74B), Crude Petroleum($1.98B), Petroleum Gas
($1.06B). <2016 >. The most recent imports are led by Refined Petroleum which represent
12.5% of the total imports of Pakistan, followed by Crude Petroleum, which account for 4.32%.

Currently, there are seven oil refineries operating in the country. Major players in the sector are
Pak-Arab Refinery Co Ltd (Parco) of 100,000bpd (4.5MTPA), National Refinery Ltd (NRL) of
64,000bpd (2.9MTPA), Pakistan Refinery Ltd (PRL) of 47,000bpd (2.1MTPA), Attock Refinery Ltd
(ARL) of 43,000bpd (1.9MTPA), Byco Refineries of 155,000bpd (7.0MTPA) output capacity,
which was commissioned in June 2015.

Pakistan is an energy-hungry country, whose imports bill is consistently on the rise with every
year and now its oil imports’ bill stands at $9.89 billion, up by 32.61 per cent in July-May 2016-
17 compared to $7.462 billion in the same period of the last financial year. In May 2017, oil
companies imported oil products worth $1.130 billion, up by 43.36 per cent, as compared to
the imports of $788.51 million in May 2016. Meanwhile, it surged only by 11.23 per cent as
compared to the figures of April 2017.
The import of Liquefied Petroleum Gas (LPG) also went up by 34.91 per cent in the last eleven
months, as the companies spent $206.5 million on the import of this commodity as compared
to the import of $153.068 million during the same period last year.

Cotton:

Ministry of Commerce (MoC) is to send a summary to the Economic Coordination Committee

(ECC) of the Cabinet for duty free import of cotton aimed at bridging gap between demand and
supply, sources close to Commerce Advisor told Business Recorder

Ministry of Commerce (MoC) is to send a summary to the Economic Coordination Committee

(ECC) of the Cabinet for duty free import of cotton aimed at bridging gap between demand and
supply, sources close to Commerce Advisor told Business Recorder.

This agreement, sources said, was reached between the Commerce Advisor and All Pakistan
Textile Mills Association (APTMA) last week. The sources said, this year cotton crop has failed
drastically and a total of less than 9 million bales are to be the final production figure. Under
these circumstances, the industry requires a mammoth six million bales plus of imports to
maintain even last year's production and export level. According to sources, Commerce Division
will submit another summary to the ECC to allow import of cotton from Torkham border.

Way of Transportation
In November 2018, the ECC had decided to allow import of cotton for one year from Torkham
border which was a big relief for the textile industry because it not only reduced the cost of
imported raw material but the quality of this cotton was far superior to Pakistani cotton and could
be used to produce a better yarn.

Textile industry requested many times in letters for extension in time for import of cotton from
Afghanistan, Mozambique, Mali and other Central Asian countries for a period of five years to
ensure smooth flow of raw material. APTMA also requested to move as summary to ECC for
approval of the proposals but now custom authorities have stopped processing cotton from
Torkham border. In the meantime, the Plant Protection Department (PPD) has visited
Afghanistan and submitted a report clearing the imports.
Commenting about the import of yarn from Oman, the sources said, yarn imported from Oman is
not of Omani origin and is most likely banned Indian yarn.

Imports from Indonesia

SOAP:
Imports of commodity group 3401 accounted for 57% of total imports of group "" to Pakistan
from Indonesia in 2019 (in 2019, the value of imports of commodity group to Pakistan from
Indonesia was $4.82 million). The share of purchases of commodity group 3401 in total imports
of commodity group to Pakistan from Indonesia went down by 11.9 p.p. compared to 2018 (it
was 68% in 2018, and imports of commodity group to Pakistan from Indonesia accounted for
$7.41 million).

The share of Indonesia in total imports of commodity group 3401 "Soap; organic surface-active
products and preparations for use as soap, in the form of bars, cakes, moulded pieces or shapes,
whether or not containing soap; organic surface-active products and preparations for washing the
skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap;
paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent." to
Pakistan amounted to 23 percent (2.75 million USD) in 2019 of 11.5 million USD - the value of
total merchandise imports of commodity group 3401 to Pakistan in 2019. The share of Indonesia
in imports of commodity group 3401 "Soap; organic surface-active products and preparations for
use as soap, in the form of bars, cakes, moulded pieces or shapes, whether or not containing
soap; organic surface-active products and preparations for washing the skin, in the form of liquid
or cream and put up for retail sale, whether or not containing soap; paper, wadding, felt and
nonwovens, impregnated, coated or covered with soap or detergent." to Pakistan went down by
-3.27 p.p. in value compared to 2018 (it was 27 percent in 2018, and total imports of commodity
group 3401 to Pakistan were equal to 18.8 million USD).

OIL SEED:
Imports of commodity group 12 amounted to 0.127% of total merchandise imports to Pakistan
from Indonesia (in 2019, total imports to Pakistan from Indonesia were $ 2.21 billion). The share
of commodity group 12 in total imports to Pakistan from Indonesia decreased by 0.061 p.p.
compared to 2018 (it was 0.189% in 2018 and cumulative imports to Pakistan from Indonesia
were equal to $ 2.5 billion).

The share of Indonesia in total imports of commodity group 12 "Oil seeds and oleaginous fruits;
miscellaneous grains, seeds and fruits; industrial or medicinal plants; straw and fodder" to
Pakistan amounted to 0.232 percent (2.83 million USD) in 2019 of 1.22 billion USD - the value
of total merchandise imports of commodity group 12 to Pakistan in 2019. The share of Indonesia
in imports of commodity group 12 "Oil seeds and oleaginous fruits; miscellaneous grains, seeds
and fruits; industrial or medicinal plants; straw and fodder" to Pakistan went down by -0.09 p.p.
in value compared to 2018 (it was 0.322 percent in 2018, and total imports of commodity group
12 to Pakistan were equal to 1.46 billion USD).

PLASTIC & ARTICALS:

Imports of commodity group 39 amounted to 0.787% of total merchandise imports to Pakistan
from Indonesia (in 2019, total imports to Pakistan from Indonesia were $ 2.21 billion). The share
of commodity group 39 in total imports to Pakistan from Indonesia decreased by 0.272 p.p.
compared to 2018 (it was 1.06% in 2018 and cumulative imports to Pakistan from Indonesia
were equal to $ 2.5 billion).

The share of Indonesia in total imports of commodity group 39 "Plastics and articles thereof" to
Pakistan amounted to 0.788 percent (17.4 million USD) in 2019 of 2.21 billion USD - the value
of total merchandise imports of commodity group 39 to Pakistan in 2019. The share of Indonesia
in imports of commodity group 39 "Plastics and articles thereof" to Pakistan went down by
-0.276 p.p. in value compared to 2018 (it was 1.06 percent in 2018, and total imports of
commodity group 39 to Pakistan were equal to 2.49 billion USD).

Wood and Wood Articles:

Imports of commodity group 44 amounted to 0.006% of total merchandise imports to Pakistan
from Indonesia (in 2019, total imports to Pakistan from Indonesia were $ 2.21 billion). The share
of commodity group 44 in total imports to Pakistan from Indonesia went up by 0.003 p.p.
compared to 2018 (it was 0.002% in 2018 and cumulative imports to Pakistan from Indonesia
were equal to $ 2.5 billion).

The share of Indonesia in total imports of commodity group 44 "Wood and articles of wood;
wood charcoal" to Pakistan amounted to 0.07 percent (134 thousand USD) in 2019