Pakistan’s annual petroleum import bill exceeded the International Monetary Fund’s (IMF) forecast during fiscal year 2025-26, driven by rising global crude oil prices amid escalating geopolitical tensions in the Middle East.
According to official government documents, Pakistan spent $16.86 billion on petroleum imports during FY2025-26, surpassing the IMF’s projected $15.28 billion by $1.58 billion.
The figures also show that the country’s petroleum import bill increased 5.76 percent year-on-year, reflecting the impact of higher international oil prices on Pakistan’s external account.
The increase comes as global energy markets experienced significant volatility following heightened tensions in the Middle East, pushing crude oil prices higher and increasing import costs for oil-dependent economies such as Pakistan.
The IMF has projected Pakistan’s petroleum import bill at $16.31 billion for fiscal year 2026-27. However, continued uncertainty in global energy markets could result in import costs exceeding that estimate if oil prices remain elevated.
Higher international crude prices have also translated into record-high domestic petrol and high-speed diesel prices, adding to inflationary pressures and increasing transportation and production costs across the economy.
Government data indicates that the rise in international oil prices was the primary factor behind the increase in Pakistan’s petroleum import bill for the fiscal year ending June 30, 2026.
The higher import bill is expected to keep pressure on Pakistan’s foreign exchange reserves and current account balance, while policymakers continue to monitor developments in global oil markets.
