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.
Thank you for reading this post, don't forget to subscribe!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
