The import bill of eatables widened by 51.9 per cent to $4.64 billion year-on-year (YoY) in the seven months of 2020-21 over the same period last year, triggering higher-than-expected trade deficit, data compiled by the Pakistan Bureau of Statistics (PBS) showed on Wednesday.
According to a report compiled by a local media outlet, the PBS data showed that the share of food items in the total import bill reached 15.84pc this year from 11.16pc last year, making the country dependent on imports to ensure food security.
It is believed that the prices of a few products are declining in the international market, which will translate into lowering import-led inflation in the country.
However, the trade deficit is widening as the overall import bill of the country has been on the rise since Nov 2020 mainly due to the rise in the import bill of eatables. The import bill inched up by 7.17pc to $29.27bn in 7MFY21 as against $27.31bn over the corresponding months of last year.
The eatable import bill of all products posted growth in value and quantity during the period under review – a clear indication of a shortage in domestic production.
The major contribution came from wheat, sugar, edible oil, spices, tea and pulses while edible oil import witnessed a substantial increase during the period under review in quantity, value and per value terms.
