<p>The State Bank of Pakistan (SBP) has temporarily allowed the import of crude oil and petroleum products on a cost, insurance and freight (CIF) basis for 60 days. The decision was announced on March 11, 2026 in a circular issued to authorised foreign exchange dealers. This move aims to ensure uninterrupted fuel supplies amid ongoing volatility in global energy markets and disruptions in shipping insurance. </p>
<h3>Reason for the Temporary Measure</h3>
<p>The SBP said the relaxation was necessary because current global conditions have made it difficult for Pakistani importers to secure marine and war‑risk insurance on petroleum shipments. In recent weeks, the Oil Companies Advisory Council (OCAC) had requested the central bank to allow CIF imports after insurers either withdrew coverage or raised premiums sharply due to heightened tensions in the Middle East, especially around the Strait of Hormuz, a key oil transit route. </p>
<h3>How CIF Imports Help</h3>
<p>Under the CIF system, suppliers arrange and pay for freight and insurance, including war‑risk coverage, up to the destination port. This contrasts with Pakistan’s usual practice, where buyers must provide their own marine insurance. The temporary CIF permission is expected to give importers greater flexibility and help maintain a steady flow of fuel cargoes into the country</p>
<h3>Implementation and Duration</h3>
<p>The SBP has instructed all authorised dealers to comply meticulously with the revised rules and inform their clients about the change. The CIF import permission will remain in effect for 60 days from the date of the circular, after which standard rules are expected to resume. </p>
<h3><strong>Government Response</strong></h3>
<p>Industry experts have welcomed the decision, saying it will help prevent supply delays and ease procurement challenges caused by sharply increased shipping costs and limited insurance availability. The move is part of wider efforts by authorities to protect Pakistan’s fuel supply chain during a period of global energy uncertainty</p>
