Islamabad September 15 2022: As per the latest data released by Pakistan Bureau of Statistics (PBS), Pakistan Machinery imports witnessed decrease of 30.57 percent YoY during first two months of this fiscal year as SBP curb imports in order to match imports with exports and remittances to avert pressure form falling Rupee.
Country imported total Machinery of worth USD 1,296 million which is lower 30.57 percent YoY during 2MFY22. This is the lowest level of machinery imports in last seven years, even below than that witnessed in COVID.
Government of Pakistan committed with International Monetary Fund (IMF) to eliminate all remaining restrictions imposed on imports when Balance of Payment conditions permit by end June 2023.
The Central Bank further clarified that SBP has advised banks to seek prior permission before initiating transactions for import of Motor Cars (CKD), Mobile Phones (CKD) and machinery.
Keeping in view the concerns of the industry, SBP and the Federal Government, in consultation with the relevant stakeholders have devised a mechanism to accommodate import by different sectors/industries i.e. automobiles, mobile phones, home appliances, tractors, 2 & 3 wheelers, transformers & switchgear, auto parts manufacturers, telecom operators and exporters. SBP has already approved more than 7,000 cases till date.
The delays in approval are caused sometimes because of submission of inaccurate or insufficient information to SBP. SBP is, however, striving hard to expedite the approval process as much as it can.
Country imported Textile Machinery of worth USD 93.3 million which is down by 35.38 percent YoY during 2MFY22. Textile manufacturer fear to loss billion in exports as State Bank of Pakistan restrict Letter of Credit opening for import of machinery.
“We at Interloop are setting up an Apparel manufacturing plant in Faisalabad. Most of the cost has incurred but SBP is not allowing to open couple of LCs for import of machinery. Our project will not only generate foreign exchange for the country” says Muhammad Maqsood Group Chief Financial Officer Interloop in mid of August.
Power Generation Machinery drops the most by 70.76 percent year on year to USD 99.381 due to slow down in construction of power plants.
Construction & Mining Machinery imports decreased by 31.54 percent year on year during 2MFY22 due to substantial increase in commodity prices and heavy monsoon season amid elevated interest rates.
Electrical Machinery & Apparatus imports is the only head that witnessed positive growth of 24.32 percent year on year during 2MFY22.
Imports of Office Machine Including Data Processing Equipment and Telecom and Power Generating Machinery increased by 60.05 percent and 53.84 percent, respectively.
Agricultural Machinery & Implements imports went down by 35.42 percent to USD 11.81 million during 2MFY22.
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