As per the official sources, Pakistan is negotiating to buy a second shipment of discounted Russian crude oil, after successfully testing the first cargo at a state-run refinery. The petroleum minister said the deal would benefit the cash-starved nation, which is facing a balance of payment crisis.
The first cargo of 100,000 tons of Russian Urals agreed in April and arrived at Karachi port last month. It paid in China’s currency, which helped Pakistan save on foreign exchange reserves, which are mainly used for oil imports.
The petroleum minister, Musadiq Malik, said the first cargo had tested at the Pakistan Refinery Limited (PRL), despite some limitations such as higher freight and insurance costs, and producing more furnace oil after refining compared with Arabian light oil.
Malik said there was no scenario under which the country was “not benefiting” from Russian crude. “We are finalizing another cargo,” he added. “It will still benefit us.” He did not disclose the quantity or price of the second consignment.
Pakistan’s demand gives Moscow a new outlet to add to growing sales to India and China, as it redirects oil from Western markets because of the Ukraine conflict. Pakistan has been facing an acute balance of payment crisis, with its central bank reserves barely sufficient to cover a month of controlled imports. It was teetering on the verge of default before securing a $3 billion bailout from International Monetary Fund late last month.
Pakistan is in talks to buy a second shipment of discounted Russian crude oil, after testing the first cargo at a state-run refinery. The petroleum minister said the deal would help the cash-starved nation, which is facing a balance of payment crisis. The deal also gives Moscow a new market for its oil, as it shifts away from Western markets.