The State Bank of Pakistan has officially extended the regulatory relaxation allowing for the import of crude oil and petroleum products on a Cost, Insurance, and Freight basis. In a move aimed at ensuring operational continuity and flexibility for the national energy sector, the central bank announced on Thursday that this permission would now remain valid until July 10, 2026. This extension provides a critical buffer for oil marketing companies and refineries as they navigate the complexities of international trade and shifting external account pressures.
In a circular disseminated to all authorized dealers in foreign exchange, the SBP’s Exchange Policy Department confirmed that the temporary relief previously granted in March 2026 has been prolonged for an additional two months. Under the CIF arrangement, the responsibility for the cost of goods, marine insurance, and freight charges rests with the seller until the cargo reaches the destination port. This stands in contrast to Free on Board (FOB) transactions, where the buyer assumes responsibility for shipping and insurance costs as soon as the goods are loaded at the port of origin.
The decision to maintain this import structure is particularly significant for Pakistan’s energy security. By allowing sellers to manage the logistics and insurance of oil shipments, the government can better manage the timing of foreign exchange outflows and reduce the immediate administrative burden on domestic importers. This flexibility is essential during periods of heightened global supply chain volatility, ensuring that the inflow of vital fuel supplies remains uninterrupted regardless of logistical bottlenecks at the point of origin.
State Bank officials have instructed authorized dealers to ensure meticulous compliance with the updated timeline. Banks across the country are required to circulate these instructions among their relevant departments and constituents to avoid any procedural delays in the processing of import documentation. The continuation of this policy is viewed by industry experts as a pragmatic step to stabilize the energy supply chain while the broader economy works toward achieving long-term macroeconomic stability.
As the new deadline of July 10 approaches, the central bank is expected to keep a close watch on the country’s foreign exchange position and global oil market trends. For now, the extension offers a welcome sense of predictability for an industry that is central to Pakistan’s industrial and transport sectors. By aligning financial regulations with the practical needs of energy importers, the SBP continues to play a stabilizing role in the management of the country’s essential commodity inflows.
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