CAD reaches $15bn, ‘govt looking to import oil from Russia’

Reports say energy ministry has asked advice from refineries on oil-import

Picture source - AFP

The Ministry for Energy has written a letter to refineries operating in the country asking for suggestions on importing crude oil from Russia as the current account deficit (CAD) of Pakistan exceeds Rs15 billion.

Media has reported that the oil sector has been asked for recommendations on how to import oil from Russia.

Pakistan has been in a difficult situation as the shift of increased oil prices on the common man has caused financial difficulties.

The previous government led by the Pakistan Tehreek-e-Insaf government under the then prime minister Imran Khan had claimed that they were going for an agreement with Russia for purchase of oil at a 30 percent discount. The then energy minister Hammad Azhar tweeted a letter from the government to Russia regarding imports of oil; however the present government has been claiming that Russia didn’t respond to that letter.

According to the State Bank of Pakistan (SBP), the current account deficit during the same tenure of last year was $1.183 billion, which has now increased to a value of $15 billion; showing a 131 percent rise.

The rise in current account deficit has been stated by experts to have been caused by record prices globally for oil, gas and commodities along with decreased exports, remittances and declining foreign exchange reserves.

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