By Raza Khan

ISLAMABAD, Aug 5 (INP-WealthPK): Pakistan’s imports of food items reached $9.015 billion during the fiscal year 2021-22, up by 8% ($8.343 billion) as compared to the preceding year, the Ministry of Commerce reported. 

Pakistan has spent largest chunk of food group imports bill on purchasing palm oil during 2021-22. The import bill of palm oil amounted to $3.549 billion during the last fiscal year against $2.668 billion in 2020-21, with an increase of 33%.

According to Trade Development Authority of Pakistan (TDAP), Pakistan imports 75% of palm oil products from Indonesia under the Preferential Trade Agreement (PTA), and 25% from Malaysia under the Free Trade Agreement (FTA). Despite these agreements, Pakistan faces high duties on crude palm oil and increasing prices of refined palm oil.

The total local consumption of edible oil is 5 million metric tonnes, 30% of which is domestically-produced and 70% of the demand is met through the import of refined palm oil.

Apart from palm oil, Pakistan also imports soybean oil worth $197 million during the year under review as compared to $95 million in 2020-21, up by 107.36%.

Tea remained second largest import item in the food group during 2021-22 with import value of $626 million against $580 million in the preceding year, up by 8%. Pakistan is the largest tea importer in the globe.

Kenya is largest source of tea import for Pakistan in terms of quantity and value. According to the United Nations COMTRADE database on international trade, Pakistan imported tea worth over $480 million from Kenya in 2021.

Import of wheat declined by 19.12% during 2021-22 to $795 million from $983 million in 2020-21, according to the Ministry of Commerce.

Pakistan imported $611 million worth of pulses during the year under review as compared to $709 million in the preceding year, a decline of 13.82%. Import of milk, cream and milk food for infants also declined by 15.33% in the last year to $162 million.

With an increase of 49.21%, import of sugar rose to $191 million during last fiscal year from $ 128 million in 2020-21. Imports of spices, and dry fruits and nuts were $ 216 million and $ 65 million respectively during the year under review.

Sajid Amin, Research Fellow at Sustainable Development Policy Institute (SDPI), told WelathPK that as an agricultural country, Pakistan needs to reduce its food group imports.

“There is a need to modernise agricultural practices in the country to improve the quality and quantity of food products,” Amin said. He said the farmers need to enhance per acre yield through research and innovation.

Soil testing, proper use of fertilizers, high quality seeds, water management, and suitable crops of regional basis would produce better results, he suggested.

Amin pointed out that import of palm oil, wheat and sugar can be reduced by enhancing production and proper management.

Credits: Independent News Pakistan—Wealthpk