ISLAMABAD – Pakistan has made its first order for discounted Russian crude oil and a shipment is scheduled to arrive at Karachi port in May, according to a new agreement between Islamabad and Moscow.
In addition China and India, Russia now has a new market for its crude this allows Moscow to divert volume from western markets where its oil has been prohibited following the crisis in Ukraine.
Discounted crude provides Pakistan, which is already struggling financially due to a balance of payments problem and dangerously low foreign exchange reserves, with much-needed relief.
The vast majority of the country's foreign payments are made for energy imports.
According to statistics from analytics company Kpler, Pakistan imported 154,000 barrels of oil per day in 2022, which was essentially flat from the previous year. Saudi Arabia, the biggest exporter in the world, and the United Arab Emirates provided the majority of the crude.
There may be a significant decline in Middle East suppliers to Pakistan if Russian crude production were to hit 100,000 barrels per day