Sindh Halts Oil Cargo Clearances Over New Bank Guarantee Policy

KARACHI – The Sindh government has taken a dramatic step, withholding import clearance for oil cargoes from several companies including Pakistan State Oil (PSO), in response to a new policy demanding bank guarantees from importers.

The move, announced Sunday, comes just weeks after the provincial administration implemented stricter financial requirements for fuel importers, citing the need to ensure compliance with tax regulations. However, the policy has effectively stalled fuel supplies across the province, raising alarms about potential shortages and price hikes.

"This is an unprecedented situation," said an official from PSO, speaking on condition of anonymity. "We have cargoes sitting at the port, unable to clear customs. Every day's delay means fuel isn't reaching the pumps, and that affects everyone from transporters to the average driver."

The standoff highlights the fragile balance between government regulation and the smooth functioning of essential industries. While officials defend the policy as a necessary measure to curb tax evasion, industry leaders warn that the sudden enforcement is causing more harm than good.

Pakistan's energy sector, already facing numerous challenges, now confronts this new hurdle. The federal government is reportedly monitoring the situation closely, with potential mediation efforts expected in the coming days as the economic implications of the port blockade become increasingly clear.