ISLAMABAD, Nov 20: While the depreciation of rupee has increased the cost of imports, Pakistan’s oil import bill recorded the highest one-month drop since 2003 in October as the oil prices plunged at international level.

Oil has lost more than 65 per cent of its value in international market since hitting an all-time high above $147 per barrel in July as fears escalate that a deepening global economic crisis will further depress demand.

In absolute term, the import value of crude oil dropped to $219.760 million in October from $472.671 million over the same month last year, showing a decline of 53.51 per cent, suggested data issued by federal bureau of statistics on Thursday.

But on the other hand, the import of petroleum products recorded a hefty growth of 102.33 per cent in the month under review on the back of rising demand of these products in transport sector.

Analysts said more than 23 per cent depreciation of rupee since July last will increase the import bill of overall oil group (crude oil and petroleum products) because there will be no letup in the demand so the quantity of the group will see no drop in the months ahead.

Similarly, they said Pakistan could not accrue that much benefits from the steep fall in the price of edible oil, raw materials, and food items in international market during the current fiscal year ending June 30 2009, if the rupee had not shed its value to such great extent. The benefit could be much more if the health of rupee this year would have remained around the last year’s level.

The statistics showed that overall import of the oil group (crude oil and products) was up by 69.88 per cent to $4.861 billion during the July-October period of the current fiscal year against $2.861 billion over last year.

With this, it was expected that the net cost of Pakistan’s petroleum products could escalate in the current fiscal year. The full year oil import bill crossed the $11 billion mark last year causing huge dent in the country’s forex reserves.

A similar impact has been witnessed in the import bill of food items and agriculture products during the months under review. The food import bill was up by 51.29 per cent to $1.616 billion in July-Oct period this year against $1.068 billion last year.

Of these, import of wheat increased by 1,820 per cent, tea 48 per cent and palm oil 24.18 per cent during the period under review over last year.

Similarly, the import bill of agriculture sector was up by 25.20 per cent to $2.208 billion in the current four months against $1.764 billion last year. Of these, import of fertilisers increased by 17.5 per cent, plastic materials 8.96 per cent and others by 40.25 per cent.

The machinery import rose to $2.395 billion during the period under review as against $2.183 billion over last year. The import bill of this group was dragged due to 132.22 per cent increase in power generating machinery, 4.84 per cent in office machinery, 47 per cent in construction and mining machinery.

But the impact of depreciation of rupee and imposition of additional duty has been reflected in the import bill of vehicles and mobile phones. A drastic cut of over 57 per cent was recorded in import of transportation group (built -up units and CKD/SKD) during the first four months of the current fiscal year over the last year.

A reduction of 39 per cent has been witnessed in the telecom sector during the July-October of the current fiscal year over last year. Of these import of both mobile phones and machinery declined.

A slight deceleration has been witnessed in the flow of other commodities in the wake of imposition of additional customs duty plus appreciation of rupee.