The escalation of 6 percent month-on-month (MoM) in the price crude oil (Arab light) coupled with amplification of 12 percent MoM in volumetric terms under the head of petroleum group imports during July, have propelled the import payments under the said head by 6 percent.
In addition to that, import payments of foods group have also propped up by 5 percent as compared to Jun-12, primarily due to massive 73 percent or by $34mn in monetary terms, additional payments under the sub head of other foods items.
Despite the above mentioned rise in import payments, cumulative import payments of the country has gone southwards by 5 percent MoM. This an InvestCap Research report said was mainly due to decrease in the import payments made under the head of metal group, in which prime decline was experience under the sub group of Iron and Steel (payments slashed by 24 percent MoM, while the quantity imported of the commodity faltering by 44 percent MoM during Jul-12). Moreover, the report said, this cause was further supported by decline of 15 percent MoM felt by the Machinery group import payments.
Impressive growth witnessed in export receipts of other manufactured items played massive part in limiting the fall in cumulative export receipts of the country to a single percent in comparison to the month of Jun-12. Some help in the said cause was provided by the textile group as well, as the receipts under the mentioned head grew by meager 2 percentMoM. However, decline in export of petroleum products (due to political tensions with the US) did put some pressure on the export receipts. The government is aiming to import additional 200k tons of urea while 300k tons has already been imported. The import payments of Soyabean oil that was imported during Jul-12 is still to be made. In addition to that, oil prices have escalated by alarming 9 percent MoM during Aug-11 and the growth is expected to be witnessed in the demand of the commodity on the back of additional demand coming in from power producers.
