ISLAMABAD – Pakistan has made its first order for discounted Russian crudeoil and a shipment is scheduled to arrive at Karachi port in May, accordingto a new agreement between Islamabad and Moscow.
In addition China and India, Russia now has a new market for its crude thisallows Moscow to divert volume from western markets where its oil has beenprohibited following the crisis in Ukraine.
Discounted crude provides Pakistan, which is already struggling financiallydue to a balance of payments problem and dangerously low foreign exchangereserves, with much-needed relief.
The vast majority of the country’s foreign payments are made for energyimports.
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According to statistics from analytics company Kpler, Pakistan imported154,000 barrels of oil per day in 2022, which was essentially flat from theprevious year. Saudi Arabia, the biggest exporter in the world, and theUnited Arab Emirates provided the majority of the crude.
There may be a significant decline in Middle East suppliers to Pakistan ifRussian crude production were to hit 100,000 barrels per day
