Pakistan Oil Industry To Collapse: Pakistan’s oil companies have warned that the oil industry has reached the verge of complete collapse. Companies say that due to non-availability of dollar and continuous falling rupee prices have created a crisis on the industry. According to the companies, only a few days are left and the oil industry of Pakistan will completely collapse.
At the same time, now the country is waiting for the help from the International Monetary Fund (IMF), but it seems that Pakistan is not going to get this help soon. Explain that to meet the demand of the International Monetary Fund, the government has removed the dollar cap. As a result, the rupee fell to a historic low of Rs 276.58 in the interbank market.
Loss of billions due to fall of local rupee
In a letter to the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Power, the Oil Companies Advisory Council (OCAC) said the industry has suffered billions of rupees in losses due to the sudden fall of the local rupee. Along with this, due to the dwindling foreign exchange reserves, the government has also banned LC (Letters Of Credit).
Pakistan imports energy
Pakistan is currently facing a balance of payments crisis and the falling value of the rupee is increasing the prices of imported goods. Energy comprises a major portion of Pakistan’s import bill. Pakistan typically meets more than a third of its annual electricity demand using imported natural gas, whose prices have risen steadily since Russia’s invasion of Ukraine.
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