Pakistan has been unable to procure LNG from the international market as spot prices are out of its range and shipments under long-term deals are insufficient to match rising demand.
With local gas reserves dwindling, the country has begun rationing supplies to residential and commercial consumers. Local media have also reported that oil is in short supply due to difficulties in paying for imports.
Oil and energy constitute the largest portion of Pakistan’s import bill.
With foreign exchange reserves as low as $7.5 billion as of 25 November, little more than a month’s worth of imports, and a mounting current account deficit, South Asian economies are facing a balance of payments crisis.