"Extraordinary situations call for extraordinary measures," Ishrat Husain told a news conference after the release of the bank's annual report, which said record oil prices would push the current account into deficit and hurt the rupee.

"The State Bank of Pakistan will make all payments for oil shipments from its own resources. It will reduce (dollar) demand in the interbank market and go a long way in stabilising the rupee rate."

Husain estimated the country's current monthly oil import bill at $350-$400 million. He said the bank would make the payments from now until the situation normalised.