KARACHI: Pakistan is all set to receive the first container ship directly from Russia next week at the Karachi harbor, paving the way for speedy and direct access for Pakistani exporters to Russian markets, an official of a shipping agency confirmed on Friday.
The direct service will start between the port city of Karachi and Russia’s Saint Petersburg from May 25, mainly for the export of Pakistani products.
The development comes as cash-strapped Pakistan is desperately looking to increase its exports and bolster trade relations with other countries to shore up its depleting foreign exchange reserves, which have fallen to critically low levels over the last few months. The country has been waiting for the approval of a bailout program from the International Monetary Fund (IMF) to stave off the possibility of default but has so far been unsuccessful in finalizing an agreement with the global lender.
Earlier this year, Pakistan also signed a deal with Russia to purchase crude oil and oil products at a cheaper rate and is awaiting the first shipment.
“The container ship, Necoline, will berth on May 25 at the Karachi Port and will depart on the same day,” Abdullah Farrukh, CEO of the shipping agency Pak Shaheen Private Limited, told Arab News. “This is a significant development in the history of Pakistan that a Russian ship is coming to the country that will load Pakistani products and directly supply them to the Russian market for the first time.”
Farrukh said the direct service will operate on a monthly basis before its frequency is increased from August this year, keeping in view the expected surge in trade flow between the two countries.
He added the direct service would also reduce the delivery time to 19 days as compared to the usual 50 days that it took previously.
“With the commencement of direct service, the Karachi Port will be transformed into a transshipment hub and cargoes from another neighboring country would be transported via Karachi,” he added. “Cargo from China, India, Malaysia, and other regional countries would be transshipped from Karachi to Russia.”
Responding to a question about the mode of payment, Farrukh said the payment would be made in Chinese Yuan because Russian importers are willing to pay in Yuan and the transactions would be facilitated by both Chinese and Pakistani banks.
The Pakistani embassy in Russia announced in a statement on Friday that Moscow signed a protocol related to customs cooperation with Pakistan’s commerce ministry.
It said the protocol that covered administrative cooperation and information exchange under the unified tariff preferences of Eurasian Economic Union was “another important step in building the legal framework required for developing commercial relations” between the two countries.
Aasim Azim Siddiqui, chairman of All Pakistan Shipping Association, said the initiation of direct service would not only cut the delivery time but also help reduce shipping costs.
“In the absence of direct service between Pakistan and Russia, the transportation of goods via other ports was not only time-consuming but also costly,” he said. “This initiative would not only cut the number of days but also reduce costs or at least make it market competitive.”
Pakistani shippers said the opening of a direct shipping line would help Pakistani exporters supply textiles and sports goods, and commodities such as rice, various leather products, and fruits and vegetable, among others things, to Russia at competitive rates.
The South Asian country during the first 10 months of the current fiscal year has received $77.8 million on account of export receipts from Russia as compared to the $119.6 million received during the same period last year, according to the State Bank of Pakistan (SBP).
Meanwhile, Pakistan made payments of $522.9 million on account of imports as compared to $213.9 million in the same period last year.
Pakistan to have direct shipping link with Russia from next week — shipping agency official
https://arab.news/2zha5
Pakistan to have direct shipping link with Russia from next week — shipping agency official
- Russia’s first container ship will dock at the Karachi Port on May 25 before sailing back with Pakistani goods
- Direct shipping service will deliver cargo within 19 days, instead of 50 days, and cut down shipping costs
Pakistan raises fuel prices by Rs55 per liter as Middle East conflict drives oil surge
- Government says adequate fuel stocks in place despite global energy shock
- Oil prices jump from about $78 to over $106 per barrel amid regional conflict
ISLAMABAD: Pakistan on Friday increased petrol and diesel prices by Rs55 ($0.20) per liter each as escalating conflict in the Middle East sent global oil prices sharply higher and disrupted energy supply routes, officials said.
Global oil markets have been rattled since coordinated strikes by the United States and Israel against Iran began last week, triggering retaliatory attacks across the region, raising fears of disruption to key energy shipping routes and pushing petroleum prices sharply upward.
The price adjustment in Pakistan was announced after a joint press conference by Finance Minister Muhammad Aurangzeb, Deputy Prime Minister and Foreign Minister Ishaq Dar and Petroleum Minister Ali Pervaiz Malik, who said the government was monitoring international energy markets and domestic supply conditions amid the crisis.
“So, the decision we have made by changing the levy a little bit is that we are going ahead with increasing the price of both fuels, petrol and diesel, by Rs55 ($0.20),” Malik told reporters.
“And as soon as this matter settles, we will revise the prices downward with the same speed and take steps on how to increase people’s income and purchasing power.”
He said Pakistan entered the crisis with “comfortable energy reserves” due to earlier planning but rising global prices had forced the government to adjust domestic fuel rates to maintain supply continuity.
He said international petrol prices had climbed from roughly $78 per barrel on March 1 to around $106.8 per barrel, while diesel prices had risen to about $150 per barrel.
Malik added that the government had taken steps to minimize the burden on consumers, noting diesel plays a critical role in agriculture, transportation and public mobility.
Malik also warned that authorities would take strict action against anyone attempting to hoard fuel or manipulate supply for profiteering.
The minister said Pakistan was working with international partners to secure additional energy supplies, including arrangements with Saudi Aramco and the use of Pakistan National Shipping Corporation vessels to transport crude oil imports.
Finance Minister Aurangzeb said a high-level government committee formed by Prime Minister Shehbaz Sharif had been meeting daily to review developments in global petroleum markets and their potential impact on Pakistan’s economy.
“Pakistan currently maintains adequate energy stocks and macroeconomic stability,” Aurangzeb said, adding that the government’s response was based on preparedness rather than panic.
He said the committee, which includes senior ministers, the governor of the State Bank of Pakistan and other officials, was assessing short-, medium- and long-term implications of the crisis for inflation, foreign exchange reserves and broader economic indicators.
Deputy PM Dar said the regional conflict had significantly disrupted global energy markets, with international petroleum prices rising by as much as 50–70 percent in recent days.
The deputy prime minister added that Pakistan was also engaged in diplomatic efforts aimed at de-escalating tensions and restoring stability in the region.
Petroleum prices will now be reviewed more frequently, potentially on a weekly basis, and any reduction in global oil prices would be passed on to consumers.
Pakistan, which relies heavily on imported fuel to meet its energy needs, is particularly vulnerable to global oil price shocks that can quickly feed into inflation and pressure the country’s external accounts.
