By Arsalan Ali ISLAMABAD, April 05 (INP WealthPK):  Innovation in the energy and transport sector can help minimise trade deficit and climate change impacts. Petroleum products have a major share in the total import. The hefty bill for the import of oil/petroleum products is one of the leading factors in escalating the trade deficit of the country. The petroleum group imports increased 100.78 percent, and reached $12.941 billion in July-February FY 2021-22, as compared to $6.445 billion during the corresponding period of 2020-2021, according to Pakistan Bureau of Statistics (PBS). Pakistan’s imports from July-February 2021-22 were $52.505 billion (provisional) as against $33.858 billion during the corresponding period of last year, showing an increase of 55.07 percent. The percentage share of petroleum group in total import bill during the first eight months of 2021-22 is 24.64 percent, while during July-Feb 2020-21 the percentage share is 19 percent. The percentage share of petroleum products in the import bill has increased from 19 percent in July-Feb 2020-21 to 24.64 percent in July-Feb 2021-22, WealthPK reported. On the other hand, the country’s trade deficit surged by 82.2 percent from $17.735 billion in July-February 2020-21 to $31.946 billion in July-February 2021-22. Power and transport are the major sectors consuming petroleum products, according to Oil Companies and Advisory Council (OCAC). Dr Abedullah, Chief of Research at Pakistan Institute of Development Economics (PIDE), said while talking to WealthPK that the energy and transport sectors are the major users of oil and primary contributors to the deteriorating environment in the country. “Exhaust fumes from tailpipe emissions of vehicular transport and emissions from power plants have depleted the environment,” he stated. Abedullah said the metropolitan areas of Pakistan have been ranked as one of the most polluted regions of the world. He said the consumption of petroleum products will increase the emission of greenhouse gases and affect climate change negatively. Pakistan is one of the most vulnerable countries to the adverse impact of climate change and air pollution. A report by environmental think tank German Watch 2021 ranked Pakistan as the eighth-most climate change-affected country over the last two decades, while IQAir, a Swiss air quality technology company, ranked Pakistan’s air as the second most polluted in 2021. Electric vehicles (EVs) can play a major role in reducing dependency on oil, and contribute positively to reducing climate change. Import fuel bill will be reduced as most of the fuel used in transport is imported. EVs will help to alleviate the pressure on the country’s trade deficit by reducing the import oil bills. However, switching from conventional cars to EVs increases the additional burden on power consumption. It is important to undergo an energy transition from highly polluting fossil fuels to clean energy (renewable sources) to reduce greenhouse gases emission. This will also help to protect public health and reduce air pollution. To reduce these impacts, the country needs to take extensive mitigation measures, while transforming the energy sector towards a less polluting and carbon-neutral option. The use of renewable energy (solar energy) helps to improve energy security and to mitigate the harmful effects of climate change. Solar energy has the least negative impact on climate change as compared to any other sources. A shift from conventional vehicles to EVs will not only help reduce climate change but also affect positively the trade deficit of the country, by reducing the hefty oil import bill.