Review of oil import, consumption.

Byline: S. Kamal Hayder Kazmi

Since 2010 investigators revealed that oil demand has raised quickly altogether over the planet due to worldwide oil price has driving down. Rise within the oil price cause to extend within the cost, import bills and price of petroleum products, therefore the fall within the productivity because of growing cost of input (oil) cause fall within the consumption level, investment and consequently in economic process. They have also revealed that so oil price shocks limit the oil consumption which might lessen the economic process.

Consumption of energy plays vital role in enhancing the expansion of economy. Oil consumption also plays crucial role in every sector of economy such as power, transport and industrial sector as well. Furthermore, developed countries show more intensity towards energy consumption. Various studies are done on causality issue of energy and economic process. But still there's dilemma to end the dependable consequences.

In the developing countries like Pakistan where the oil import bill and native production of petroleum products presently recorded decline by almost 20 percent and 12 percent respectively within the half of the present year. One the one hand, vital interchange spending has been saved, while on the opposite it reflects slowing down of the economy also.

According to the Ministry of Finance, Pakistan mostly depends upon oil and gas resources to complete energy requirements. The local production of crude oil remained 24.6 million barrels during July-March FY2019 as against to 21.8 million barrels during the same period previous year. Indigenous resources of oil are not much to quench energy thirst of a growing economy. As a consequence our country has to import large quantity of oil also oil based products from Middle Eastern countries particularly from Saudi Arabia.

Statistics showed that during July-March FY2019, the quantity of crude oil imported remained 6.6 million tons with value of US$ 3.4 billion as against to the quantity 7.8 million tons with value US$ 2.9 billion during the corresponding period last year.

The fall was mostly because of rise in international prices. The deferred payment on imported oil from Saudi Arabia will give an ease to the government on balance of payments. Transport and power are the two main users of oil. During July-March FY2019, share of oil consumption in transport rose to 77 from 56 percent during the corresponding period previous year, while...