The State Bank of Pakistan (SBP) has temporarily permitted the import of crude oil and petroleum products on a cost, insurance, and freight (CIF) basis for 60 days to maintain uninterrupted fuel supplies as global energy markets face heightened volatility.
In a circular issued on Wednesday, the central bank said the regulatory relaxation was introduced due to the critical importance of oil imports and rapidly evolving conditions in the Middle East that have disrupted shipping and insurance operations.
The decision came after a formal request from the Oil Companies Advisory Council, which sought temporary flexibility to facilitate imports of crude oil, refined petroleum products, base oil, and related materials during the ongoing crisis.
Industry officials warned that the escalating confrontation involving Iran, the United States, and Israel has made global oil shipping increasingly unstable, creating logistical and financial challenges for importing countries like Pakistan.
Freight costs for vessels operating in Gulf waters have reportedly surged nearly fourfold, while marine insurers have either withdrawn coverage or significantly increased war-risk premiums for ships traveling through the Strait of Hormuz — one of the world’s most critical energy transit corridors.
Under normal arrangements, Pakistani importers are responsible for arranging freight and insurance separately. However, due to rising risks and insurance constraints, the temporary CIF allowance enables suppliers to manage transportation and insurance themselves, helping ensure smoother and faster fuel shipments.
Officials say the measure is aimed at preventing potential supply disruptions and stabilizing domestic fuel availability at a time when global oil prices remain volatile and regional tensions continue to impact international trade routes.
Also read: China Expresses Concern Over Pakistan-Afghanistan Tensions
