KARACHI: Pakistan’s external economy is benefiting from a 20% drop in global crude oil prices, as the reduced cost helps lower the import bill, build foreign reserves, and enhance the country’s debt repayment capacity.
A report by JS Global titled “Oil Price Downturn – A Familiar Safety Net” highlights that global crude prices have fallen by $17 per barrel since April 2024, reaching a 15-month low of $72.9. This decline could allow the government to raise the petroleum development levy by Rs10 per litre to meet its fiscal target of Rs1.28 trillion.
A sustained drop in oil prices may reduce Pakistan’s current account deficit, but it could also impact remittance inflows from oil-dependent Middle Eastern countries.
Story by Salman Siddiqui
