February 28, 2008	Thursday	Safar 20, 1429

ISLAMABAD, Feb 27: The import bill of eatable items rises to the highest- ever level of $2.04 billion in the first seven months of the current fiscal year, up by 18.14 per cent from $1.731 billion last year.

The food import bill has witnessed a robust growth in the last couple of years on the back of shortages in production of farms production like wheat, sugar, pulses, etc, which were imported in bulk to meet the rising domestic demands.

Sources at the commerce ministry anticipated that by end June 2008, the import bill of food items would be around $3.5 billion mainly owing to rising international food prices, particularly of wheat, and palm oil, etc.

Official figures compiled by the Statistics Division showed that the import bill of wheat reached $208.784m in seven months of the current fiscal year against $32.626m over the corresponding period of last year, indicating a growth of 539.93pc.

On this account, the food import bill will reach new heights in the months ahead as the containers of wheat now under shipment has yet to reach the Pakistani ports.

Owing to constant increase in palm oil prices in the international market, the import bill for edible oil reached $834.892 million during the July-Jan period of the current fiscal year, up 66.76 per cent from $500.657 million over the corresponding period last year.

The palm oil bill is expected to cross the $1 billion mark easily by end June 2008, which would heavily burden the foreign exchange reserves of the country.

On the other hand, the import bill of soyabean oil witnessed 217.65 per cent increase in July-Jan period of the current fiscal year as it stood at $64.937 million as against $20.443 million over the corresponding period of last year.

During the past eight years or so the scaling down of tariffs on consumer items also encouraged the inflow of foreign brands, which flooded the local market. The local manufacturers or farmers were the end-losers of the government ill-conceived policies of liberalisation of trading regime.

The statistics showed that the import of milk products increased by 3.06 per cent to $45.016 million during the period under review as against $43.689 million.

On this account the import bill will increase further as the international prices of milk powder would also witness a robust growth due to shortages in production.

The import of dry fruits increased by 31.53pc to $46.288 million during the period under review as against $35.192 million, 20.89 per cent in spices to $39.379m as against $32.574m and 9 per cent increase in import of all other food items to $575.304 million as against $527.796 million, respectively.

However, the import bill of pulses declined by 32.21 per cent to $107.416 million during July-Jan ‘08 as against $158.460 million; 95.85 per cent in sugar to $10.840 million as against $251.142 million, and 12.16 per cent in import of tea to $113.662 million against $129.392 million, respectively.