KARACHI: Pakistan may face fuel shortage in February as banks halt import financing. The nation’s balance of payments crisis and declining rupee value are driving up the cost of imported goods, with energy being a significant portion of Pakistan’s import expenses.
According to Reuters Pakistan relies on imported natural gas to meet over one-third of annual anergy demand. The price of energy increased after Russia invaded Ukraine.
“No shortages expected this fortnight. Potential shortages in the future, if Letters of Credit (LCs) remain unopened, warns a senior official.”
However, the fuel shortage rumors circulated in the country on 24th January, but Finance Minister Ishaq Dar and Oil and Gas Regulatory Authority (Ogra) denied the claims and assured adequate stock availability.
“Oil traders avoiding countries such as Pakistan and Sri Lanka due to foreign exchange shortage,” said Reuters.
Meanwhile, Pakistan increases petrol and diesel prices by 16% to Rs249.80 per liter, as the IMF talks are underway to resume the suspended Bailout Package.
“If there are no issues with LCs in Pakistan then why was the SBP (State Bank of Pakistan) and sector been holding meetings all of last week?,” a senior official from one of the oil companies said.
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