SBP temporarily allows oil Imports on CIF basis

March 12, 2026 (MLN): The State Bank of Pakistan (SBP) has temporarily relaxed import rules for crude oil and petroleum products to allow shipments on a cost, insurance and freight (CIF) basis for the next 60 days, as authorities seek to ensure uninterrupted energy supplies amid a volatile global environment.

According to the circular, authorized dealers in foreign exchange have been permitted to process imports of crude oil and petroleum products on a CIF basis for a limited period of 60 days from the date of issuance.

The decision marked a temporary departure from existing provisions outlined in Pakistan’s Foreign Exchange Manual, which prescribes permissible Incoterms for imports.

According to the circular, the relaxation has been granted in view of the “prevailing situation” and the critical importance of crude oil and petroleum products for the country’s energy needs.

Typically, imports into Pakistan are encouraged under specific Incoterms that determine how shipping costs, insurance, and risks are distributed between buyers and sellers.

Under the CIF arrangement, the seller is responsible for arranging and paying for shipping and insurance until the cargo reaches the destination port, potentially easing logistical and financial burdens for importers.

This measure could help ensure the timely arrival of fuel shipments and reduce operational uncertainties for energy importers at a time when global supply chains remain sensitive to geopolitical tensions and shipping disruptions.

Pakistan relies heavily on imported energy to meet domestic demand, with crude oil and refined petroleum products forming a major component of the country’s import bill.

The central bank instructed authorized dealers to inform their clients about the temporary policy change and ensure strict compliance with the revised directive.

The relaxation will remain in place for two months, after which the import regime will revert to the standard rules unless further guidance is issued by the central bank.

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