SBP Refutes Reports of Restrictions on LCs for Import of Oil, LNG, & Petroleum Products

State Bank of Pakistan (SBP) has rejected reports of placing restrictions on Letter of Credits (LCs) for the import of Oil, LNG and Petroleum Products and called all such news as “misinformation being spread with ulterior motives to create uncertainty in the market.”

In a press release, the central bank said, “It is clarified that SBP has not placed any restriction (verbal or otherwise) on opening of Letters of Credit (LCs) or contracts for import of crude oil, LNG and petroleum products.” adding that such reports were misinformation being spread by media to create uncertainty in the market.

In fact, SBP ensures timely processing of FX payments through banks related to import of oil and gas products (including LNG) and in accordance with the contractual maturity of the trade documents.” it said. “All the LCs/contracts for oil import are being retired on their due date through interbank foreign exchange market without any delay.” it added.

The same is also evident from trade data released by State Bank of Pakistan (SBP) in terms of which country’s oil import stood at US$1.48 billion and US$1.47 billion for the month of Sep-22 and Oct-22 respectively, the banking regulator concluded.

However, SBP is yet to respond to the claims of pharmaceutical industry of an impending shortage of medicines in Pakistan due to restriction of LCs for the import of raw materials and medical equipment.

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