Iran cuts subsidy on POL: import volume may soar by around $6.3 billion

As a result of subsidy cuts especially on petroleum products (POL) by Iran, the Pakistan's import volume of POL is expected to soar by around 6.3 billion dollars in coming months, analysts said. They further said although the removal of subsidy in POL products in Iran would discourage bootleggers to transport Iranian POL products to local markets, the same would create more pressure on imports bill.
The analysts said the import of POL products, which is presently stood at over 30 billion dollars approximately, would be surged by 6.3 billion dollars in coming months due to said reason. Moreover, they said the smuggled Iranian POL products were presently catering 21 percent of market demand and after the withdrawal of POL subsidy in Iran, the country's imports bill would be jumped by 6.3 billion dollars in couple of months.
Replying to a question, they said the bootleggers, who earlier marketed Iranian diesel at Rs 22 per liter in local markets, including all other expenses, would now purchase the same at Rs 47 from Iran. They therefore, opined that the subsidy cuts of Iran in POL products would discourage its illegal trade but put excessive financial burden on the country's imports bill. The analysts also urged the government, who is already facing serious financial problems to meet foreign commitments, to find other resources to maintain its import bill at sustainable level.