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Home / Business / Oil import bill swells to $6.7b against $6.43b, Pakistan to save $4b,1.5pc of GDP
Oil import bill swells to $6.7b against $6.43b, Pakistan to save $4b,1.5pc of GDP

Oil import bill swells to $6.7b against $6.43b, Pakistan to save $4b,1.5pc of GDP

KARACHI: Though the govt has partially passed on benefits of falling crude oil price in the international market, it is yet to contain the rising oil import bill which has jacked up to $6.69 billion during July-Nov 2014-15 against $6.43 billion in the corresponding period of last year.

There appears no strategy on the part of the govt to reap benefits of the falling crude oil though the world is set to save over $1.3 trillion from oil price fall.

According to the State Bank of Pakistan report, Pakistan paid a total of $6.69 billion on the import of petroleum products and crude oil during July-Nov 2014-15, higher than $6.43 billion spent on oil import during the same period last year.

Since June, oil prices started falling from $115 per barrel to $60 per barrel in the third week of December. The massive cut in the oil prices created a great opportunity for countries like Pakistan, China and India to save foreign exchange, slash oil prices for domestic consumers, and allow the savings to be spent for growth.

The SBP report showed that bill for both petroleum products and crude oil increased despite sharp cut in the oil rates. The report informed that oil imports constituted 36 percent of Pakistan’s total import bill and a 30pc decline in oil prices was likely to result in annual savings of $4 billion (1.5pc of GDP).