Karachi, March 11, 2026 – The State Bank of Pakistan (SBP) has temporarily allowed the import of crude oil and petroleum products on CIF (Cost, Insurance, and Freight) basis for a period of 60 days, citing uncertainty arising from the ongoing Iran war and the strategic importance of energy supplies for the country.
In a circular issued on Wednesday, the central bank directed authorized dealers and commercial banks to take note of the temporary policy relaxation under Para 5, Chapter 13 of the Foreign Exchange Manual, which outlines permissible Incoterms for imports into Pakistan.
According to the SBP, the decision was taken in light of the prevailing geopolitical situation and the critical need to ensure uninterrupted supply of crude oil and petroleum products.
“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 basis for a period of sixty (60) days from the date of issuance of this circular,” the SBP stated.
Temporary Relaxation in Import Terms
The SBP instructed banks to inform all their clients and importers about the temporary measure and ensure strict compliance with the updated directive.
Under the existing provisions of the Foreign Exchange Manual, imports into Pakistan are normally allowed under the following Incoterms:
• FOB (Free on Board)
• FCA (Free Carrier)
• FAS (Free Alongside Ship)
• CFR (Cost and Freight)
• CPT (Carriage Paid To)
The manual also allows imports on EXW (Ex-Works) basis under certain conditions. In such cases, remittance against imports must be made upon presentation of shipping documents at the importer’s bank, while the importer must arrange insurance from the supplier’s warehouse.
For imports conducted under any Incoterms not listed in the manual, prior approval from the Foreign Exchange Operations Department of SBP Banking Services Corporation is required.
Ensuring Energy Supply Stability
The temporary approval for CIF-based imports is expected to help Pakistani oil importers manage logistics and insurance risks more efficiently during the current geopolitical tensions. The move aims to prevent supply disruptions and ensure the continued availability of petroleum products in the domestic market.
Energy imports remain a critical component of Pakistan’s economy, with the country heavily reliant on imported crude oil and refined petroleum products to meet its energy demand.