ISLAMABAD: The State Bank of Pakistan (SBP) has allowed banks to raise the credit limit of oil marketing companies (OMCs) to facilitate oil import and to avoid its shortageSBP allows banks to raise credit limit of OMCs to facilitate oil imports.
The SBP had written a letter to the Oil and Gas Regulatory Authority (OGRA), stating that the local banks are willing to support the OMCs’ credit requirements, subject to their positive credit due diligence.
The letter dated April 1, 2022 reads: “In view of the strategic importance of petroleum products for meeting the domestic needs, the State Bank of Pakistan has held various meetings wherein representatives of banks, OMCs, and oil refineries participated.”
According to the letter, SBP is monitoring the import transactions and credit exposures of OMCs to ensure the banks accommodate the credit needs of the sector promptly, Geo News reported today.
Local Refineries have been asking for an increase in their credit limits to open LCs for timely import of crude oil for producing finished products such as mogas (motor gasoline or petrol), diesel, and furnace oil.
