“All LCs or contracts for oil import are being retired on their due date through the interbank foreign exchange market without any delay,” according to SBP.
The opening of Letters of Credit (LCs) or contracts for the import of crude oil, liquefied natural gas (LNG), and other petroleum products is not subject to any restrictions, according to a clarification provided by the State Bank of Pakistan (SBP) on Thursday.
The central bank released a brief statement in this respect that stated, “Such information is being shared with ulterior motivations to cause uncertainty in the market.”
According to recent reports, the import of crucial chemicals needed by refineries to process crude oil is in peril, which would likely result in a shortage of petroleum products in the nation.
According to news reports, the LC for the import of chemicals necessary for refinery operations was not being opened, and this condition could cause the refineries to reduce or suspend operations, which would cause a shortage of POL products, particularly Mogas (petrol).
The SBP noted in the statement it released today that it ensures the prompt processing of foreign currency payments through banks relating to the import of oil and gas products (including LNG) and in line with the contractual maturity of the trade papers.
It added that the same was also apparent from trade data released by the SBP, according to which country’s oil import stood at $1.48 billion and $1.47 billion for the months of September 2022 and October 2022, respectively. “All LCs or contracts for oil import are being retired on their due date through interbank foreign exchange market without any delay,” it said.