Pakistan is set to gain significantly from the recent drop in international oil prices, with expected annual savings between $3 billion and $3.5 billion
Pakistan is set to gain significantly from the recent drop in international oil prices, with expected annual savings between $3 billion and $3.5 billion. Crude oil prices have hit a three-year low, currently under $70 per barrel, and forecasts indicate they may dip to around $60 per barrel by 2025.
A report from Alpha Beta Core highlights that these savings could alleviate inflation and improve the trade deficit, given that energy imports constitute about 31% of Pakistan’s total imports for FY 2024.
Additionally, the decline in oil prices aligns with reduced borrowing costs, following a cut in the policy rate from 22% to 17.5%. This combination is likely to stimulate business investments and foster economic growth, particularly in manufacturing.
