No restrictions placed on LCs for import of oil, other petroleum products: SBP

The State Bank of Pakistan (SBP) clarified on Thursday that it 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.

“SBP would like to clarify some misinformation being spread in the media that the import of oil and petroleum products has been restricted by it,” it said in a statement. “Such misinformation is being spread with ulterior motives to create uncertainty in the market.”

SBP ensures timely processing of forex 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,” the central bank said. “The same is also evident from trade data released by State Bank of Pakistan (SBP) in terms of which country’s oil import stood at $1.48 billion and $1.47 billion for the month of September and October 2022, respectively.

Earlier, a report claimed that SBP had informed Oil Marketing Companies (OMCs) and oil refineries that they will not be opening any new LCs for the import of fuel until December 6.