Fuel oil exports from Pakistan reached a new high in April, with the country shipping out 164,000 tons during the month due to low demand, reported Bloomberg.
Pakistan also did not import any fuel oil in March or last month. The unprecedented situation arose against a backdrop of severe economic instability, with activity declining, inflation skyrocketing, and the currency depreciating.
Government officials are currently in talks with the International Monetary Fund (IMF) to restart a $6.5 billion bailout program that is critical to avoiding a default on its loans.
Pertinently, the country’s power consumption is significantly lower than a year ago, according to Energy Minister Khurram Dastgir Khan in a recent interview. He attributed lower electricity demand to relatively cool weather and higher power prices.
Fuel pricing has been a sticking point for negotiations between the IMF and Pakistan over the next installment of a 2019 aid program, which has stalled since August 2022.
The IMF has about $2.6 billion remaining to disburse, with the program expiring at the end of June 2023. Distorted politics is causing volatility for Pakistan and its investors and could complicate talks with the lender.