ISLAMABAD: Amidst rising concerns, the oil industry in Islamabad is urging the government to reconsider its method of determining the exchange rate for petroleum imports. Industry executives argue that the present system of calculation is outdated and becoming increasingly inefficient, thereby necessitating immediate changes. The implications of this ongoing issue extend not only to the profitability of the oil sector but also to the overall economic stability of the country.
1. The oil industry in Islamabad is calling on the government to reconsider the current method used to determine the exchange rate for petroleum imports.
2. Industry executives believe the outdated system is inefficient and urgently needs changing, impacting both their profitability and the overall economic stability of the country.
3. The current system allegedly places stakeholders in the oil industry at a financial disadvantage as it doesn't consider real-time currency fluctuations.
4. In the face of unstable economic conditions and constant variations in exchange rates, a more dynamic and adaptive calculation method is being advocated for by the industry.
5. Representatives from the oil industry argue that an updated calculation method would support the smooth operation of the businesses and protect the local economy from potential shocks due to sudden changes in international prices.
In Pakistan, petroleum products imports contribute around 25-30% of the total imports bill annually.
The current system, as claimed by stakeholders in the oil industry, allegedly places them at a financial disadvantage. This is because it doesn't consider real-time currency fluctuations, a critical factor in international trade deals. Given the unstable economic conditions and constant variations in exchange rates, oil industry representatives argue that a more dynamic and adaptive calculation method would be better and fairer. They believe that this would not only ensure smooth operation of their businesses but also shield the local economy from potential shocks due to abrupt changes in international prices.