ISLAMABAD, Sept 21: The country’s import bill of oil declined by 6.53 per cent to $1.344 billion during July-August period of fiscal year 2007-08 as against $1.438 billion over the same months last year.

The negative growth in import of oil bill has been recorded for the last couple of months in the wake of substantial decrease in the import bill of products manufactured from oil during the period under review over the last year.

However, the import bill of crude was up by 6.53 per cent to $689.09 million in July-Aug 2007 as against $646.835 million in the same months last year. The recent surge in oil prices in the international market increased the oil import bill which would further escalate during the upcoming months.

The oil prices surged to $84 per barrel recently, which is anticipated to increase further as there was disruption in supply of oil in international market.

Official figures released here on Friday by the Federal Bureau of Statistics (FBS) indicated that import of products manufactured from oil declined by 17.20 per cent to $655.467 million during the first two months of the current fiscal year as against $791.588 million over the same period last year.

It indicates that the share of oil is still on the higher side, which like last year, would be the prime mover of trade deficit this year because of greater consumption.

The second biggest component of the import bill in value was machinery group.

However, its import increased by 10.33 per cent in July-Aug 2007-08 to $1.139 million as against $1.032 billion over the same months last year.

The import bill of machinery was mainly pushed by an increase of 15.95 per cent in power generating machinery, construction machinery 28.74 pc, electrical machinery 28.95pc and agriculture machinery 85.46 pc.

Statistics showed that more depressing aspect of the current trend in economy was the steady decline in import of textile machinery which declined by more than 33.51 per cent during the July-August period of the current fiscal year over last year. It means textile tycoons have stopped importing machinery.

Food items import dipped by 5.48 per cent to $472.134 million as against $499.515 million in the corresponding months of the last year.

The import of milk products decreased by 1.36 per cent, wheat unmilled 40.84pc, tea 23.22pc, sugar 97.92pc and pulses 44.17pc during the period under review.

The import of palm oil increased by 90.06pc, soyabean oil 1,011pc, spices 2.1pc, dry fruits 330.13pc during the July-August period of the current fiscal year over last year.