Imports hit near three-year high
Wheat, sugar, oil, gas remain major contributors to increase in March 2021
Textile was the largest export earning sector of Pakistan. It attracted almost 60% of the overall export earnings. PHOTO: AFP
KARACHI:
Pakistan’s imports hit near three-year high of $5.66 billion in March with major contribution coming from import of wheat and sugar, oil and gas, fertilisers and pesticides, automobiles, mobile phones and machinery and equipment for industries.
The increase in imports suggests that Pakistan’s economic activities are on a rise amid the third wave of the Covid-19 pandemic.
However, persistent growth in imports - which grew over 71% to $5.66 billion in March compared to $3.3 billion in the same month last year - may widen the country’s current account deficit, which means that Pakistan’s capacity to make international payments for imports and foreign debt repayment would become weaker.
Taking cue from global market, DAP prices jump
Covid-19 disruptions trigger shortage of commodity in world market
Owing to a jump in international price of di-ammonium phosphate (DAP) fertiliser arising from shortage of the commodity amid Covid-19 disruptions, the local price of DAP has increased as well.
“As per our channel checks, Engro Fertilisers has increased DAP prices by Rs400 to Rs4,350 per bag with effect from January 7, 2021 due to a rise in international price of the commodity,” said Topline Securities’ analyst Sunny Kumar in a research report.
The international price of DAP had increased by $35 to $390 per ton in the last two months, Kumar said. “So far, Fauji Fertiliser and Fauji Fertiliser Bin Qasim have not increased their prices but we believe these companies will follow suit.” Rising cost of phosphoric acid coupled with a persistent increase in DAP prices in the global market lifted local prices of urea, said Arif Habib Limited Head of Research Tahir Ab