POL products: Country spends nearly one-fourth of total import bill: minister

ISLAMABAD: Minister for Finance and Revenue Senator Muhammad Aurangzeb has said that Pakistan spends nearly one-fourth of its total import bill on petroleum imports.

He said that Rs 1.342 trillion was collected through the petroleum levy from July 2025 to April 2026.

In a written reply to a question in the National Assembly’s question hour on Friday, the Minister said that during Jul-Mar FY2026, petroleum imports accounted for 22.2 percent. Given the share, the current account is sensitive to changes in oil prices.

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He said that in the first nine months of FY2026, the current account has registered a surplus of USD 8million, supported by an 8.2 percent growth in workers’ remittances, amounting to USD 30.3 billion and IT exports that increased by 19.8 percent, reaching USD 3.4 billion.

Aurangzeb said that in March 2026, the current account recorded a surplus of USD 1.1 billion. Despite high volatility in the oil prices, the average Brent crude in March 2026 was recorded at USD 103.7 per barrel, he said.

He said the latest external account position remains broadly consistent with the National Economic Council (NEC)-approved external sector framework reflected in the Annual Plan 2025-26. He said the Annual Plan envisages a contained current account deficit of around USD 2.1 billion, equivalent to about 0.5 percent of GDP, and remittances to around USD 39.4 billion. He said that, in addition, the foreign exchange reserve position remains strong. As of 30th April 2026, these were recorded at USD 21.3 billion, he said.

He said that additional deposits of USD 3 billion have been received from Saudi Arabia, along with an extension in terms of the earlier USD 5 billion deposits, and the government has successfully issued Eurobonds in the international market. He said that the International Monetary Fund (IMF)’s Extended Fund Facility (EFF) program remains on track. These factors ensure the strengthening of our external buffers to sustain any current account pressures that may materialize in the future if the conflict in the Middle East prolongs, he said.

He said that amid a volatile and evolving situation in the Middle East, the downside risks persist. He said the impact has remained contained so far, and it is expected to remain within the target range for FY2026. However, if the shock persists and materially alters the external outlook, projections will be updated through the normal macroeconomic framework review process during the upcoming Annual Plan Coordination Committee (APCC) and NEC meetings before the Budget FY2026-27, he said.

Copyright Business Recorder, 2026