Commodities

Pakistan is amongst the top producers of wheat in the world with annual production of around 22 – 24 Mln tonnes. Primarily a bread eating country with a population of about 185 Mln, local consumption of wheat equals the local production figures. However exports and imports of the commodity have taken place in a surplus and deficit situation respectively.

Consumption of sugar in Pakistan is approx 4.2 Mln Tonnes/ Annum. Production of sugar varies, with availability of sugar cane, which is the primary source of production of sugar in Pakistan. Usually local demand is met with local production. During 2001/2002 Pakistan exported some quantities. Since 2009 Pakistan is regularly importing sugar.

Pakistan annual production of corn is approx 3.0 Million MT, similar to wheat the local production tends to meet the local consumption. However in recent years the import and export of the commodity have taken place, but in small quantities.

Pakistan is a regular exporter of this commodity and is ranked amongst the top five Exporters in the world. Predominantly two types of rice, basmati and non-basmati, are produced in Pakistan. All the rice exports are done by the private sector. In 2009 and 2010 Pakistan has exported around 3.5 Mln tonnes of rice per/annum (all varieties).

The annual consumption of edible oil in Pakistan is between 3.3 to 3.5 Mln tonnes. Major portion (approximately 80%) of this demand is fulfilled through imports of different types of oilseeds and edible oils. Popular Oilseeds Include Canadian Canola, Australian Canola, Black Sea Rapeseed and Sunflower seed. With respect to Edible Oil mostly different processed varieties of palm oil are imported. Since 2008 Pakistan Indigenous production for local variety for oilseeds has decreased, which has prompted greater imports of oilseeds.

Fertilizer off take in Pakistan has increased over the years to stand at around 9Mln tonnes/ annum, with a distribution of 75% is Urea, 20% is DAP and other account for remaining 5% (MAP, MOP, SOP, NP, TSP). In 2009 Pakistan imported around 2.7 Mln tonnes of fertilizer. Principally an agricultural based economy, it is forecasted that the fertilizer off take would increase to 11 Mln tonnes/annum by 2015.

Pakistan has the Naphtha production facility of around 0.7 Mln to 0.8 Mln tonnes/ Annum. Nearly all Naphtha produced is exported, due to absence of Naphtha cracker unit in Pakistan. There are 4 major refineries around Pakistan producing Naphtha: PRL (Pakistan Refinery Limited), NRL (National Refinery Limited), ARL (Attock Refinery Limited) and BYCO (Formerly Bosicor).The total Naphtha production is expected to reach to 1 Mln tonnes/ Annum levels by end 2010.

There are 19 distilleries all over Pakistan with the annual production capacity of 0.5 Million tonnes/annum. However production has remained steady over the years at around 0.35 Million tonnes. Nearly all of the Ethanol produced is exported.

Pakistan total processing of crude oil averages 11 Mln tonnes/ annum. Local available crude oil is around 3 Mln tonnes/ annum whereas imports stand at a considerable 8 Mln tonnes/ annum. At current there are 7 major refineries involved in the refining of crude oil. The major energy related products derived are Motor Spirit, HSD, FO, Aviation Fuels, and Naphtha.

The total consumption of Coal in Pakistan has increased steadily over the past few years to 8 Mln/tonnes per annum. Increase in coal consumption is attributed to extensive usage in the cement and power sectors. With annual production of around 4 Mln MT, Pakistan needs around another 4 Mln MT of imports to meet its annual local demand.

Pakistan’s annual cement production capacity at current is around 45 Mln tonnes and by June 2011 it is expected to reach the 50 Mln tonnes mark, with capacity utilization of approx 70%. Local consumption of cement has been steady over the years to about 20 Mln tonnes. Exports however have seen aggressive growth from 3 Mln tonnes in 2006 – 2007 to 11.3 Mln in 2008 – 2009. These export stats earned Pakistan the 5th highest position in the world cement exporters list. The major destinations for Pakistan cement exports include Afghanistan, Qatar, India, Sudan, Liberia, UAE, Iraq and Oman.

Steel Imports into Pakistan varied between 300 k to 400 k tonnes/ annum on an average till 2009, with substantial reliance on the biggest steel producer of the nation Pakistan Steel Mill. Since January 2010 Pakistan Steel Mill has decreased its production to 25% of the total, which has resulted in increased imports into the country to fulfill the demand. For 2010 steel imports are estimated around 800 k tonnes. Pakistan is an Importer of both Long and Flat products.