‘We’re on brink of collapse’: Oil firms write to Pakistan PM amid financial disaster

Pakistan is experiencing a stability of funds disaster and oil corporations are reportedly getting ready to collapse because of the depreciation of the forex.

New Delhi,UPDATED: Feb 4, 2023 11:59 IST

A gasoline pump is pictured at a Pakistan State Oil petrol station in Rawalpindi, Pakistan. (File picture: Reuters)

By India Today Web Desk: Oil firms in Pakistan are getting ready to collapse because of the worsening financial disaster and devaluation of the forex, Geo News reported.

The Oil Companies Advisory Council (OCAC) in a letter to the Oil and Gas Regulatory Authority (OGRA) and Energy Ministry, wrote in regards to the “depreciation” of the native rupee which has affected a number of companies within the South Asian nation, drastically.

The authorities has additionally restricted LCs attributable to depleting international alternate reserves, which dipped to USD 3,086.2 million on January 27 and are solely sufficient for 18.5 days.

READ | ‘IMF bailout circumstances past creativeness however…’: Pak PM as financial disaster deepens

On Friday, Cnergyico Refinery shut down its operations for every week because of the non-availability of crude oil.

Pakistan is experiencing a stability of funds disaster, and the falling worth of the rupee is elevating the price of imported commodities. Energy accounts for a large portion of Pakistan’s import invoice.

Pakistan’s Prime Minister Shehbaz Sharif stated he must comply with the International Monetary Fund’s bailout circumstances which might be “beyond imagination” because the disaster is deepening.

The authorities has held out in opposition to tax rises and subsidy slashing demanded by the IMF, afraid of backlash forward of elections due in October.

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Published On:

Feb 4, 2023