Caretakers likely to rationalize imports

MUSHTAQ GHUMMAN &

ZAHEER ABBASI

ISLAMABAD: The caretaker government faced with serious challenges on account of balance of payment position (BoP) is expected to step up efforts to rationalize non-essential imports to reduce the quantum of trade deficit.

Pakistan’s trade deficit reached an all time high of $30 billion during the first ten months of the current fiscal year with $49 billion imports and $19 billion exports.

Sources said that Commerce Division has started preparing a list of non essential items subsequent to a maiden meeting with caretaker Finance Minister Dr Shamshad Akhtar.

A participant of the meeting told Business Recorder that the Caretaker Finance Minister has convened another meeting early next week to firm up plans for curtailment of non essential items and to prepare policy guidelines to lessen dependence on imports.

A senior official present during the briefing given to the Caretaker Finance Minister told Business Recorder that the import of mobile phones, used vehicles as well rise in imports of non essential items from China, office equipment, plastic items and many other items are being considered non-essential. There is sufficient cushion available to rationalize a decrease in imports, he added.

The government recently imposed Regulatory Duties on hundreds of items aimed at slashing luxury and non essential items. However, later on the RDs were reviewed on Afghanistan’s request.

Pakistan imported $5.26 billion food items during July-April 2017-18 followed by $9.506 billion machinery imports and transport imports stood at $3.153 billion.

Petroleum product imports stood at $11.440 billion, textile imports $3.893 billion, agriculture imports including plastic material $7.27 billion, and imports of metal group were $4.448 billion. Miscellaneous imports were $1.077 billion and other imports stood at $4.103 billion.

Ministry of Industries essential commodities lists include: (i) foodstuffs including edible oilseeds, and oils; (ii) paper including newsprint, photographic paper, paper board, pulp board, wall board, fiber board straw board, box board, cellulose wadding, cellulose film and other similar materials, which are manufactured, wholly or mainly either from vegetable fibres or pulp thereof or both from such fibres and such pulp, but does not include of these materials; (iii) petroleum and petroleum products; (iv) mechanically propelled vehicles, including those in completely knocked-down condition, their spare parts, and tyres and tubes for the same; (v) coal; (vi) iron and steel; (vii) drugs and medicines, including those administered by injection; (viii) chemicals, including gases; (ix) electrical and radio good and appliances including wires and cables; (x) Glass plates and glass sheets; (xi) artificial silk yarn; (xii) cycles and their spare parts; (xiii) Timber; (xiv) Sanitary and water supply fittings; (xv) infant and patient foods and allied articles; (xvi) cement; (xvii) cigarettes; (xviii) tallow; (xix) ammunition including gun and rifle cartridges; (xx) 35 mm (cine) raw films; (xxi) torch cells; (xxii) cotton textiles and yarn; (xxiii) chemical fertilizers; (xxiv) glazed tiles; (xxv) art silk fabrics; [(xxvi) woolen and worsted textile and yarn, all sorts; (xxvii) sugar; (xxviii) tea; (xxix) shaving blades; (xxx) school and colleges text books]; [(xxxi) plastic compounds and plastic sheets;(xxxii) sewing machines and their spare parts; (xxxiii) typewriters, comptometers and similar mechanical equipments used in offices and their spare parts.