Oil imports on CIF basis allowed for 60 days

ISLAMABAD: Given petroleum import challenges under the prevailing geopolitical conditions, Pakistan on Wednesday allowed the import of crude oil and all petroleum products with advance war-risk insurance for a period of 60 days, on the demand of the local oil industry, to facilitate imports.

“In view of the prevailing situation and the critical importance of crude oil and petroleum products for the country, it has been decided to allow import of crude oil/petroleum products on CIF (cost, insurance and freight) basis for a period of 60 days starting March 11,” said a formal circular issued by the State Bank of Pakistan (SBP) on Wednesday night.

In the circular issued to presidents and chief executive officers of all authorised foreign exchange dealers, the SBP directed that all dealers and their constituents be immediately advised for meticulous compliance.

The oil industry had earlier this week demanded special permission for oil imports, including crude, with unusual war-risk insurance cover for two months as marine shippers were reluctant to provide cargoes. “In the prevailing circumstances, obtaining adequate marine and war-risk insurance cover has become extremely difficult,” the Oil Companies Advisory Council (OCAC) had written to the government, SBP and the Oil and Gas Regulatory Authority.

SBP issues circular to authorised forex dealers for immediate compliance

SBP issues circular to authorised forex dealers for immediate compliance

It reported........

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