Oil industry in Pakistan on verge of ‘collapse’ amid liquidity crisis
Oil companies in cash-strapped Pakistan have warned that the industry is on the “brink of collapse” as the dollar liquidity crisis persists and their cost of doing business balloons due to the rupee’s devaluation.
The government removed the dollar cap to meet the International Monetary Fund’s (IMF) demand which resulted in the Pakistani rupee falling to a historic low of Rs 276.58 in the interbank market, according to a Geo News report.
The IMF has set several conditions for resuming the bailout, including a market-determined exchange rate for the local currency and an easing of fuel subsidies, both conditions which the government has already implemented.
