SBP eases FX rules to support energy imports

April 23, 2026 (MLN): The State Bank of Pakistan (SBP) has relaxed foreign exchange regulations to facilitate critical energy imports, allowing commercial banks to take on a greater role in arranging financial instruments for oil and gas shipments.

The Central Bank said in a circular that authorized dealers can now issue financial instruments at the time of registering import contracts for crude oil and petroleum products.

Banks are also permitted to issue standby letters of credit (SBLCs) for imports of crude oil, petroleum products and liquefied natural gas.

The move came against the backdrop of heightened geopolitical tensions, which have disrupted global energy markets and tightened trade financing conditions.

By delegating these functions to banks, policymakers aim to streamline import processes and ensure uninterrupted energy supplies.

The changes amend provisions under Pakistan’s Foreign Exchange Manual related to imports processed through the Pakistan Single Window system, as well as guarantees issued on behalf of residents in favor of non-residents.

The central bank has directed authorized dealers to notify their clients and ensure strict compliance with the revised framework.

The latest measures signal authorities’ focus on safeguarding energy supply chains, a key concern for the import-dependent economy as external pressures persist.

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