In a surprising development, Pakistan’s fuel oil exports increased to a record in April, reported Bloomberg on Tuesday.
As per the report, Pakistan shipped out 164,000 tons of fuel oil in April, the largest volume since at least 2017, according to Kpler data compiled by Bloomberg. The data found that Pakistan did not import any fuel oil during March and April.
The development comes as the South Asian country, a net importer of fuel, faces lower domestic demand on account of cooler weather and an ongoing economic slowdown.
Bloomberg said that the unprecedented flows came against a backdrop of severe economic crisis, as the country faces dwindling foreign exchange reserves, high inflation and a weakened currency.
Meanwhile, the government remains in talks with the International Monetary Fund to restart a bailout programme, which has remained stalled since November last year.
Pakistan’s overall oil import decreased by 48% YoY (-22% MoM) during April 2023, according to data provided by Arif Habib Limited (AHL), a brokerage house, on Monday.
The brokerage house said that the country’s oil imports stood at 1.072 million tons during April as compared to 2.055 million tons during the same month last year.
The import of RLNG (Re-gasified Liquid Natural Gas), a key fuel for power plants, declined by 33% YoY to 1.816 million tons in April.
Earlier, Federal Minister for Power Khurram Dastgir during his interview with Bloomberg said that due to weaker demand Pakistan’s energy crisis is not as severe as last year.
This has put the country in a better position ahead of peak demand over summer, with Pakistan being able to produce more electricity from oil it has stockpiled recently and with additional coal generation coming on stream, he said during the interview then.
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