KARACHI, May 7, 2026 — The State Bank of Pakistan (SBP) has extended the deadline for allowing crude oil and petroleum imports on cost, insurance and freight (CIF) basis until July 10, 2026, according to a notification issued on Thursday.
The extension allows petroleum companies to continue importing fuel under relaxed payment and logistics terms amid ongoing disruptions in global shipping and insurance markets.
“It has been decided to extend the validity of the relaxation granted under the aforesaid circular letter for import of crude oil/petroleum products on CIF basis up to July 10, 2026,” the SBP said in its circular.
The central bank had initially introduced the relaxation on March 11, 2026, permitting oil imports on CIF terms for 60 days. The earlier deadline was set to expire this week.
The measure was introduced after local insurance companies declined to provide coverage for oil imports due to heightened geopolitical tensions in the Middle East, including risks linked to shipping routes in the Strait of Hormuz.
The Strait of Hormuz, a key global energy corridor, handles roughly one-fifth of the world’s petroleum shipments, making it highly sensitive to regional instability.
Industry sources said rising risk perceptions had also discouraged global reinsurers from backing Pakistani insurers, effectively tightening coverage options for oil import transactions.
Under CIF terms, foreign suppliers are responsible for arranging shipping and insurance, delivering cargo directly to Pakistani ports. This shifts transport and insurance risks from local buyers to international sellers.
Previously, Pakistani importers operated under FOB (free on board) or C&F (cost and freight) arrangements, where local firms arranged shipping and bore associated risks through domestic insurance coverage.
Officials said a single oil tanker shipment can cost between $30 million and $50 million, underscoring the financial exposure involved in crude oil imports under normal risk arrangements.
The SBP’s latest extension is aimed at ensuring uninterrupted fuel supply and stabilising import operations until insurance market conditions improve.