Pakistan braces for fuel shortages amid liquidity crisis

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Pakistan braces for fuel shortages amid liquidity crisis
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Pakistan could face a crunch in fuel supplies in February as banks have stopped financing and facilitating payments for imports due to depleting foreign exchange reserves, traders and industry sources said.

State-owned refiner Pakistan State Oil and Pakistan LNG Ltd have left a flurry of fuel tenders unawarded in the last couple of months.

At the same meeting, the managing director of PSO said a gasoline cargo due for loading on Jan. 13 has already been cancelled due to the non-opening of LCs. "He added that the country is having limited stocks and such a situation can lead to dry out," according to the letter. In a Jan. 13 letter to the Ministry of Finance, OCAC said Pakistan needs to import around 430,000 tonnes of gasoline, 200,000 tonnes of diesel, and 650,000 tonnes of crude oil every month, costing $1.3 billion to meet local demand.

Pakistan bought only 223,000 tonnes of gasoline in December versus 608,000 tonnes in the same period a year earlier, data from Kpler showed. In January this year, the country was projected to import 270,000 tonnes of the fuel, compared with 393,000 tonnes in the same month in 2022, the data showed.

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