The State Bank of Pakistan has temporarily allowed the import of crude oil and petroleum products on a cost, insurance and freight basis for 60 days to ensure uninterrupted fuel supplies amid volatile global energy markets.
In a circular issued on Wednesday, the central bank said the relaxation was introduced due to the critical importance of oil imports and the evolving situation in the Middle East that has disrupted shipping and insurance markets.
The decision follows a request from the Oil Companies Advisory Council, which sought a two-month regulatory relaxation to facilitate imports of crude oil, refined petroleum products, base oil and related materials.
The council had warned that the ongoing Iran-US-Israel confrontation has made the global oil shipping market highly volatile.
Freight rates for vessels operating in the Gulf region have reportedly increased nearly four times, while marine insurers have withdrawn or sharply raised war risk coverage for ships passing through the Strait of Hormuz.
The Strait of Hormuz, a key global oil shipping route, has become riskier due to rising regional tensions, complicating Pakistan’s fuel imports as local buyers must arrange marine and war risk insurance, prompting a temporary move to allow suppliers to handle freight and insurance to ensure smoother fuel shipments.