Pakistan Crude Import: In the event of a war between Iran and Israel, Pakistan's monthly oil import expenditure could reach $600 million. As a result, the country is preparing to seek assistance from the International Monetary Fund (IMF) again.

Pressure on Pakistan's foreign exchange reserves

Pakistan Crude Import: Pakistan's debt-ridden economy already faces many challenges. Now, the war between Iran and Israel has further exacerbated the problem. Due to the rising tensions and war situation in West Asia, Pakistan's monthly expenditure on oil imports could rise to $600 million (approximately Rs 60,000 crore). According to a report in Pakistani newspaper Dawn, the country's Finance Minister Muhammad Aurangzeb said that to ease the pressure of this growing economic burden on the government, an appeal will be made to the International Monetary Fund (IMF) for relief in the petroleum levy (tax).  

Speaking to reporters last Sunday, Aurangzeb stated that in the event of war in West Asia, Pakistan's monthly oil import bill could rise to $600 million. He also stated that the government is developing additional plans to address the impact of rising oil prices. Meanwhile, Pakistan's Petroleum Minister, Ali Pervez Malik, has called for exploring ways to conserve fuel and extend the country's existing reserves. Furthermore, Pakistan is in contact with countries like Oman and Saudi Arabia to seek alternative oil supply routes other than the Strait of Hormuz.

Petrol and diesel prices increased in Pakistan.

Meanwhile, Shahbaz Sharif's government in Pakistan has increased petrol and diesel prices by PKR 55 per liter. With this, the price of petrol in Pakistan now stands at PKR 321.17 per liter and diesel at PKR 335.86 per liter. This government decision has brought a mountain of hardship to the people there. People are already struggling with increased expenses during the month of Ramadan. The increased price of petrol and diesel has now further disrupted household budgets .

Pakistan's foreign exchange reserves are under pressure

Pakistan currently holds $21.43 billion in foreign exchange reserves. Of this, the State Bank of Pakistan (SBP) holds $16.3 billion. Therefore, an additional $600 million in oil imports could rapidly deplete Pakistan's foreign exchange reserves. Pakistan already faces the threat of a $23 billion debt from other countries. The high oil bill will divert even more dollars from imports. This could force it to resort to new loans or rollovers to repay debt.