Prime Minister Shehbaz Sharif on Sunday took to the twitter and announced arrival of the first cargo of discounted crude oil in Karachi from Russia.
“I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow,” the prime minister said in a tweet.
PM Shehbaz expressed his optimism about the positive impact this venture would have on the country’s prosperity, economic growth, energy security, and affordability
“Today is a transformative day. We are moving one step at a time toward prosperity, economic growth and energy security & affordability,” he said, adding “this is the first ever Russian oil cargo to Pakistan and the beginning of a new relationship between Pakistan and Russian Federation.”
I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.
Today is a transformative day. We are moving one step at a time toward prosperity, economic…
— Shehbaz Sharif (@CMShehbaz) June 11, 2023
He commended all those who remained part of this national endeavor and contributed to translating the promise of Russian oil import into reality.
The arrival of the first-ever Russian oil cargo in Pakistan is seen as the beginning of a new relationship between the two nations.
The decision to import discounted Russian oil imports was initially announced by Finance Minister Ishaq Dar last year, citing India’s successful oil purchases from Moscow as an example for Pakistan to consider.
State Minister for Petroleum Musadik Malik then visited Moscow for talks on various matters, including oil and gas supplies.
Following these discussions, the Pakistani government confirmed its intention to purchase discounted crude oil, petrol, and diesel from Russia.
In January 2023, a Russian delegation arrived in Islamabad, and after addressing technical issues such as insurance, transportation, and payment mechanisms, both countries aimed to sign an agreement by late March.
Subsequently, Pakistan placed its first order for discounted Russian crude oil in April, with expectations of reaching imports of 100,000 barrels per day (bpd) if the initial transaction went smoothly. Initially, Pakistan’s Refinery Limited (PRL) will refine the Russian crude in a trial run, followed by Pak-Arab Refinery Limited (Parco) and other refineries.
This decision to import discounted crude from Russia is significant for Pakistan, considering its historical status as a Western ally and rival to neighboring India, which has closer ties to Moscow. However, Pakistan’s urgent financing needs and its acute balance-of-payments crisis compelled the nation to seek alternative solutions.
Energy imports, which constitute a major portion of the country’s external payments, have been straining its finances.
Currently, Pakistan meets 80% of its oil requirements, approximately 154,000 bpd, through traditional suppliers in the Gulf and Arab regions, primarily Saudi Arabia and the UAE. The introduction of Russian oil, up to 100,000 bpd, would significantly reduce Pakistan’s dependence on Middle Eastern fuel.
