SBP denies restricting import payment for petroleum products State Bank of Pakistan

SBP denies restricting import payment for petroleum products

KARACHI: State Bank of Pakistan (SBP) on Thursday strongly rejected reports of restricting oil and petroleum products import payment.

The central bank clarified that some reports suggested regarding restriction on import of oil and petroleum products by the SBP.

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“It is clarified that SBP has not placed any restriction (verbal or otherwise) on opening of Letters of Credit (LCs) or contracts for import of crude oil, LNG and petroleum products,” according to a statement issued by the central bank.

Such misinformation is being spread with ulterior motives to create uncertainty in the market, it added.

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In fact, SBP ensures timely processing of foreign exchange payments through banks related to import of oil and gas products (including LNG) and in accordance with the contractual maturity of the trade documents.

All the LCs/contracts for oil import are being retired on their due date through interbank foreign exchange market without any delay.

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The same is also evident from trade data released by 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.