Petroleum imports account for 22.2% of Pakistan’s import bill, says Aurangzeb

In a written reply to the National Assembly, Minister for Finance and Revenue Muhammad Aurangzeb said Pakistan spends nearly one-fourth of its import bill on petroleum products, making the external account vulnerable to fluctuations in global oil prices.

The finance minister said petroleum imports accounted for 22.2% of total imports during July-March FY2026. He added that the government collected ₨1.342 trillion through petroleum levy during the period from July 2025 to April 2026.

According to Aurangzeb, Pakistan’s current account recorded a surplus of $8 million during the first nine months of FY2026.

He said the external account was supported by an 8.2% increase in workers’ remittances, which reached $30.3 billion, while IT exports rose 19.8% to $3.4 billion.

The finance minister stated that the current account posted a surplus of $1.1 billion in March 2026 despite volatility in international oil markets.

He said average Brent crude prices stood at $103.7 per barrel during March 2026.

Aurangzeb said the latest external sector position remained broadly aligned with the National Economic Council-approved framework under the Annual Plan 2025-26.

According to the framework, the government expects the current account deficit to remain contained at around $2.1 billion, equivalent to 0.5% of GDP, while remittances are projected at approximately $39.4 billion.

He added that foreign exchange reserves stood at $21.3 billion as of April 30, 2026.

The minister said Pakistan had also received an additional $3 billion deposit from Saudi Arabia, alongside extension of earlier $5 billion deposits and successful issuance of Eurobonds in international markets.

He said the International Monetary Fund Extended Fund Facility programme remained on track and helped strengthen external buffers against possible pressures arising from prolonged tensions in the Middle East.

Aurangzeb said downside risks linked to the regional situation persisted, although the impact had remained contained so far and was expected to stay within the FY2026 target range.

He added that if the external outlook changed materially because of prolonged regional conflict, projections would be reviewed through the Annual Plan Coordination Committee and National Economic Council process before the FY2026-27 budget.