The State Bank of Pakistan (SBP) refuted rumors that the government has restricted the opening of Letters of Credit (LCs) and contracts for the import of crude oil, liquefied natural gas (LNG), and other petroleum products.
The central bank stated briefly, “Such material is being shared with ulterior motivations to generate market concern.”
The import of vital chemicals, which are required by refineries to process crude oil, is in peril, according to recent reports indicating that the country will likely face a shortage of petroleum products.
The news articles stated that the LC for the import of essential chemicals for refinery operations was not being opened and that this situation might lead to the curtailment or suspension of the refineries’ operations, resulting in a shortage of POL products, especially Mogas (petrol).
In its statement released today, the SBP noted that it ensures the timely processing of foreign currency payments through banks for importing oil and gas products (including LNG) and complies with the contractual maturity of trade agreements.
“All the LCs or contracts for oil import are being retired on their due date through interbank foreign exchange market without any delay,” it said, adding that the same was also evident from trade data released by the SBP in terms of which country’s oil import stood at $1.48 billion and $1.47 billion for the month of September 2022 and October 2022 respectively.
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