Pakistan's Petroleum Imports Experience Marginal Growth in FY25

Pakistan's economy has been closely tied to its petroleum imports, which play a crucial role in meeting the country's energy demands. In the first four months of the fiscal year 2024-25, which spans from July to October, the nation experienced a slight increase in its petroleum imports. According to the Pakistan Bureau of Statistics (PBS), these imports rose by 1.68%, reaching a total of $5.113 billion. This is an increase from $5.029 billion during the same period last year.

Overall, Pakistan's total imports during this timeframe amounted to $17.972 billion, reflecting a growth of 5.86% compared to $16.977 billion in the previous year. However, the month of October 2024 saw a decline in imports, dropping to $4.591 billion. This represents a decrease of 1.40% from $4.656 billion in September 2024 and a more significant drop of 5.59% from $4.863 billion in October 2023.

When examining the petroleum group imports specifically, a stark decline was noted on a year-on-year (YoY) basis. In October 2024, these imports fell by 30.55%, totaling $1.060 billion, down from $1.527 billion in October 2023. Month-on-month (MoM), the petroleum group imports also experienced a significant drop of 23.61%, decreasing from $1.388 billion in September 2024.

Particularly concerning is the performance of petroleum products, which saw a notable decline during the first four months of FY25. Imports of these products fell by 18.89%, totaling $1.753 billion, compared to $2.161 billion in the same period last year. In October 2024, petroleum product imports dropped by 38.34% YoY, amounting to $398.39 million, down from $646.1 million in October 2023. On a MoM basis, these imports fell by 22.49% from $513.96 million in September 2024.

In October 2024, the major commodities imported included petroleum products valued at Rs. 110.62 billion, petroleum crude at Rs. 85.05 billion, natural gas liquefied at Rs. 77.45 billion, and palm oil at Rs. 76.73 billion. Other significant imports comprised plastic materials, iron and steel, electrical machinery, and mobile phones.

This mixed performance in petroleum imports highlights the challenges Pakistan faces in managing its energy needs. The country is navigating fluctuating global commodity prices and varying domestic demand trends. As Pakistan continues to strive for energy security, it is essential for policymakers to address these challenges effectively. The future of the nation’s energy landscape will depend on strategic planning and adaptation to both local and international market dynamics.