Pakistan Prime Minister said the first shipment of discounted Russian crude oil has arrived in Karachi and will start releasing oil on June 12 and this is the beginning of a new relationship between the two countries.
On June 11, Pakistani Prime Minister Shehbaz Sharif announced that the first shipment of discounted Russian crude oil under a new agreement reached between Islamabad and Moscow had arrived in Karachi.
On his personal Twitter account, Mr. Sharif wrote: “Happy to announce that the first shipment of discounted Russian crude oil has arrived in Karachi and will start discharging oil on June 12.
This is the first (discounted) Russian oil shipment to Pakistan and the beginning of a new relationship between the two countries.”
On the evening of June 11, a port official said the oil shipment was being unloaded.
Reuters first reported on the oil deal between the two countries in April this year.
The discounted crude deal is seen as having major implications for Pakistan, which is facing a payments crisis and is at risk of default, with energy imports accounting for the bulk of Pakistan 's external payments.
The country's crude oil imports are expected to reach 100,000 barrels per day after the first shipment.
There is no confirmation yet on the payment method, but Pakistan has recently announced plans to allow barter trade with Russia, Afghanistan and Iran.
This could reduce demand for US dollars and the risk of cross-border smuggling of energy products, analysts say.
Cheap crude oil supplies are essential for a cash-strapped country facing a balance of payments crisis and extremely low foreign exchange reserves. Energy imports make up the bulk of Pakistan’s external payments.
Data from analytics firm Kpler shows that Pakistan imported 154,000 barrels per day of oil in 2022, relatively stable compared to the previous year.
Most of the crude oil is supplied by the world's top exporter Saudi Arabia, followed by the United Arab Emirates./.
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