SBP Eases Foreign Exchange Rules for Energy Imports

The State Bank of Pakistan (SBP) has relaxed foreign exchange rules to facilitate faster imports of crude oil, petroleum products, and liquefied natural gas, amid ongoing global uncertainty and rising energy needs.

In a circular issued to authorized dealers, the central bank allowed commercial banks to issue financial instruments at the time of import contract registration for crude oil and petroleum products.

Banks have also been permitted to issue standby letters of credit for the import of crude oil, petroleum products, and LNG, expanding their role in facilitating energy trade transactions.

To implement the changes, SBP has amended relevant provisions of the Foreign Exchange Manual, updating instructions related to financial instruments and guarantees for imports.

Authorized dealers have been directed to inform their clients of the revised rules and ensure strict compliance with the updated framework.