Pakistan Crude Import: Pakistan’s economy, already burdened by debt, is grappling with several difficulties. Meanwhile, the escalating tension between Iran and Israel has further increased its concerns. The ongoing conflict in West Asia is affecting the oil market, which is likely to further increase Pakistan’s crude oil import bill.
According to a report by Pakistani newspaper Dawn, the country’s Finance Minister Muhammad Aurangzeb has stated that if the situation persists, Pakistan’s monthly expenditure on oil imports could reach approximately 600 million dollars (about 60 thousand crore rupees).
Given this increasing economic pressure, the government is hoping for relief from the International Monetary Fund. The Finance Minister hinted that Pakistan might request the IMF for some relief in the petroleum levy (tax) to reduce the additional financial burden on the country.
Speaking to reporters on Sunday, Pakistan’s Finance Minister Muhammad Aurangzeb said that in a situation of escalating tension in West Asia, the country’s monthly oil import bill could reach around 600 million dollars. He informed that the government is working on alternative strategies to mitigate the impact of rising oil prices.
Meanwhile, Pakistan’s Petroleum Minister Ali Pervaiz Malik has also spoken about considering measures to reduce fuel consumption so that existing oil reserves can be utilized for a longer period.
Additionally, Pakistan has increased contact with Gulf countries to secure oil supplies. The government is negotiating with countries like Oman and Saudi Arabia to ensure oil supply through alternative routes other than the Strait of Hormuz.
Petrol and Diesel Prices Rise in Pakistan
Meanwhile, Prime Minister Shehbaz Sharif’s government in Pakistan has increased the prices of petrol and diesel by about 55 Pakistani Rupees per liter. Following this decision, the price of petrol in the country has reached approximately 321.17 PKR per liter and diesel about 335.86 PKR per liter.
This move by the government has further increased the economic pressure on common people. People are already troubled by rising inflation and increased expenses during Ramadan. In such a situation, this hike in petrol and diesel prices has further disrupted the monthly budget of many families.
Pakistan’s Foreign Exchange Reserves Under Pressure
Pakistan’s foreign exchange reserves are already under pressure. Currently, the country has total foreign exchange reserves of approximately 21.43 billion dollars, out of which about 16.3 billion dollars are held by the State Bank of Pakistan. Thus, if an additional expenditure of about 600 million dollars on oil imports increases every month, it could directly impact Pakistan’s foreign exchange reserves.
Furthermore, Pakistan is already under pressure from an external debt of approximately 23 billion dollars, whose installments also need to be paid. In such a situation, the increasing oil import bill could rapidly deplete the country’s dollar reserves. If the situation continues, Pakistan might have to resort to taking new loans or rolling over old debts to repay its liabilities.
