State Bank’s big move: new forex rules to facilitate oil and LNG imports

Islamabad: The State Bank of Pakistan has relaxed foreign exchange rules to accelerate oil and gas imports in view of the growing energy needs and global uncertainty.

According to a circular issued by the central bank, commercial banks have been allowed to issue financial instruments at the time of signing the contract for the import of crude oil and petroleum products.

In addition, banks have also been allowed to issue standby letters of credit, which will facilitate import payments for energy products including LNG.

The State Bank has also amended the Foreign Exchange Manual to implement these changes and has directed authorized dealers to inform customers about the new rules and ensure their full implementation.