ISLAMABAD: Pakistan’s petroleum minister Dr. Musadik Malik on Wednesday said the government was negotiating to purchase another shipment of discounted crude oil from Russia, a month after the South Asian country procured 100,000 metric tons of the commodity from Moscow to diversify its energy mix amid an economic meltdown.
The first Russian cargo arrived on June 11, carrying 45,122 metric tons of crude oil, while the second shipment containing another 55,000 metric tons reached the Karachi port on June 27, offering relief to the country amid an acute balance-of-payments crisis and currency depreciation.
The country’s purchase also provided Russia a new market, adding to Moscow’s growing sales to India and China, as it redirected oil from Western countries in the wake of its invasion of Ukraine.
“We are currently finalizing another cargo of [crude oil] with Russia,” the petroleum minister said during a news conference on Wednesday.
He added the benefits of Pakistan’s deal with Russia were not visible at this stage due to the relatively small import quantity, though it would become more obvious in the coming months.
“We cannot see the advantages of [the deal] in terms of prices but that doesn’t mean we are not benefitting from it,” he said.
Under the deal, Pakistan made payments to Russia in Chinese currency due to the dollar shortage and the government said last month it would continue to import more shipments under the same mechanism to save foreign exchange and benefit the public in the long run.
Pakistan’s petroleum imports declined by 22 percent in the last fiscal year to $15.38 billion, including seven million tons of crude oil worth $4.5 billion, according to the Pakistan Bureau of Statistics (PBS).
