Biggest oil refinery in Pakistan shuts operations due to economic crisis
Business
Non-issuance of LC’s, artificial oil prices, fluctuations in exchange rate are the main reasons.
ISLAMABAD (Dunya News) – The production in the biggest oil refinery of Pakistan, PARCO, was halted due to prevailing economic crisis and abundance of smuggled goods.
Pakistan's largest oil refinery, PARCO, has been shut down, according to petroleum industry sources, however, the refinery's management says that it has been closed due to urgent maintenance needs. The shutdown of the refinery is a significant cause of the decline in domestically produced diesel and petrol products in the country.
Pakistan's oil refineries are facing operational difficulties due to the ongoing financial crisis in the country. PARCO and other refineries have apprised the authorities about their problems. A Federal Minister of State visited PARCO yesterday.
Refineries are facing difficulties in getting LCs (Letters of Credit) for the import of crude oil. Also artificial control on oil prices and the fluctuations in the exchange rate are inducing destabilisation in the market.
The closure of PARCO has exacerbated the challenges faced by Pakistan's oil refineries.
