SBP Eases Import Financing Rules For Energy Supplies

SBP relaxes import financing rules to speed up energy supplies, allowing earlier issuance of instruments and LCs to reduce delays amid global uncertainty.

The State Bank of Pakistan (SBP) has revised its foreign exchange regulations to streamline financing for critical energy imports, including crude oil, petroleum products and liquefied natural gas (LNG).

The central bank said the move comes “in view of the prevailing geopolitical situation” to ensure timely procurement and minimise delays in processing import transactions.

Under the updated framework, banks can now issue financial instruments and standby letters of credit (LCs) at the time of import contract registration. This allows importers to complete documentation earlier, accelerating transaction timelines.

The amendments also expand financing flexibility, enabling authorised dealers to facilitate imports through electronic data interchange integrated with the Pakistan Single Window system.

SBP emphasised that financial instruments must align with underlying contracts, including advance payments or shipping documentation. It also introduced stricter reporting requirements for guarantees involving non-residents.

“Measures are aimed at ensuring uninterrupted energy supplies and improving efficiency,” the SBP noted, highlighting efforts to stabilise imports amid global market uncertainty.