The Federal Bureau of Statistics data suggests that the import bill for oil and eatables ballooned by 23.61 per cent in 2010-11 over the previous year, contributing mainly to rising trade deficit. - File Photo

ISLAMABAD, July 19: Country's import bill for oil and eatables ballooned by 23.61 per cent in 2010-11 over the previous year, contributing mainly to rising trade deficit, suggests Federal Bureau of Statistics data issued on Tuesday.

In absolute terms, the import of these commodities reached $20.259 billion, the highest ever in the country's history during the outgoing fiscal year as against $16.389 billion over the previous year.

The food groups emerged second after oil import bill in the year under review to bridge the shortfall recorded in the local production of farm products as the floods destroyed the standing crops in August last.

The import bill of eatables reached $5.086 billion in fiscal 2010-11 against $3.575 billion over the previous year, reflecting an increase of 42.27 per cent.

Within food group import, the major contribution came from sugar, edible oil and pulses.

The domestic shortfall in sugar production necessitates import of 1,032,539 tons of sugar resulting in growth of 132.29 per cent and the country has to incur expenditure of $685.314 million during the year.

At the same time, the edible oil import also witnessed a substantial increase during the outgoing fiscal year in quantity, value and per value terms. The higher import bill of palm oil is because of ease in the international price, higher domestic demand and cut in import duty.

These factors encouraged import of palm oil, which reached $2.012 billion in the year as against $1.310 billion over the previous year, showing an increase of 53.61 per cent. A 141.95 per cent growth was recorded in import of soyabean oil as it reached $66.933 million in July-June, 2011 as against $27.664 million over the previous year.

The import of milk products witnessed an increase of 66.20 per cent in the outgoing fiscal year over the previous year followed by 23.36 per cent increase in import of tea, and 28.66 per cent in spices.

Statistics showed the oil import bill reached $12.082 billion in fiscal 2010-11 as against $10.028 billion over the previous year, indicating an increase of 20.48 per cent. This mainly reflects the spike in international oil prices as per unit values of petroleum crude increased by over 23.6 per cent.

Of these, the import of crude oil was up by 51.57 per cent to $4.808 billion in outgoing fiscal year as against $3.172 billion previous year. This suggests a rising oil demand in the domestic market as the quantity of crude oil import also witnessed an increase of 18.32 per cent during the year under review.

The import of petroleum products reached $7.274 billion in fiscal 2010-11, surged by 6.09 per cent from $6.856 billion previously. The huge injection of money in the rural areas mainly because of inordinate rise in prices of cotton and sugarcane led to higher domestic demand to import road motor vehicle, which increased by 8.87 percent to $1.313 billion in fiscal 2010-11 as against $1.206 billion over the previous year. But aside from this the import bill of whole transport group up by 2.01 per cent to $2.068 billion as against $2.027 billion over the previous year.

Telecom import also surged by 34.77 per cent to $1.023 billion in 2010-11 as against $759.511 million. Most of the increase in overall telecom imports has been contributed by mobile phone imports, which grew by 66.07 per cent as it stood at $522.836 million against $314.822 million in the previous year.