Pakistan’s central bank, the State Bank of Pakistan (SBP) has warned its government about dwindling forex reserves and its impact on country’s ability to sustain imports. The decline in SBP’s Forex reserves, which fell to $8.24 billion on June 17 is likely to continue due to pressure of debt servicing and other payments in near future.
To preserve the diminishing Forex, SBP has advocated a temporary ban on import of all non-essential goods. It has apparently highlighted the risk ballooning fuel imports entail for the energy security of the country.
Pakistan’s total petroleum imports stood $9.7 billion during fiscal year 2020-21. But as rising global prices pushed its import bill to more than $14.46 billion in July-April period of the current fiscal year and its Forex position tightened, the ramifications on Pakistan’s oil imports have been critical.