ISLAMABAD: Pakistan’s State Minister for Petroleum Dr. Musadik Malik has said that Pakistan will receive the first shipment of cheap oil from Russia next month, local media reported on Sunday, amid an economic crisis that has limited the South Asian country’s import capabilities.
Pakistan has been negotiating with Russia to import oil and gas at discounted rates to reduce pressure on the country’s foreign reserves, which are barely enough to cover a month of imports.
Last month, Officials of the Pakistani and Russian state-owned oil companies held a meeting in Karachi to finalize the deal oil.
Malik said in an interview last week the Pakistani government had been successful in finalizing talks with Russia in this regard.
“The first shipment will reach Pakistan next month through a cargo,” the state-run Radio Pakistan broadcaster reported, quoting the minister. “The government would sell cheap oil after receiving this shipment.”
Oil and energy make up the largest portion of Pakistan’s imports, which surpassed $23 billion during the last financial year and constituted 29 percent of the South Asian country’s total imports.
Russia this year conceptually agreed to supply crude oil and oil products to cash-strapped Pakistan at cheaper rates and signed several memoranda of understanding with Pakistan’s energy ministry.
After an inter-governmental meeting in January, Malik had said his country wanted to import 35 percent of its total crude oil requirement from Russia.
Under the G2G deal, Pakistan’s Petroleum Division wants to lock the deal at close to $50/barrel, according to local media reports.
Malik previously said Pakistan would receive its first consignment of crude oil from Russia in the first week of April.
