ISLAMABAD – The Pakistani government has sought industrial experts’ opinionon oil import from Russia.
The move to procure oil from Russia at a cheaper rate comes at a time whenthe country is suffering from a very acute financial crisis and the IMF isreluctant to approve the next installment of the multi-billion dollar loanprogramme.
Pakistan’s monthly fuel oil imports are set to hit a four-year high inJune, according to Refinitiv data.
The country’s fuel oil imports could climb to about 700,000 tonnes thismonth, after hitting 630,000 tonnes in May, according to Refinitivestimates. Imports last peaked at 680,000 tonnes in May 2018 and 741,000tonnes in June 2017.
In a letter written to the managing directors of the Pak-Arab Refinery,National Refinery, Pakistan Refinery and Byco Petroleum, Pakistan’s EnergyMinistry directed them to submit the following analysis:
– Technical sustainability of crude grades in view of each refinery configuration and yield (Vol%). – Quantity and grade of the subject crude to be required by the refinery. – Transportation/freight analysis for imports from Russia in comparison with normal imports from the Middle East based on cost and benefit analysis. – Payment methodology – Existing commitment to upliftment from the Arab Gulf region with respect to term contracts. – Speaking on a TV show a day ago, Minister of the State for Petroleum Musadik Malik had said that Pakistan was “open to the idea of importing cheap oil from Russia”.
He said that as against the PTI-led government’s claim in this regard,there were no official agreements between the two states regarding theimport of cheap oil. However, a letter was sent to Russia by the previousgovernment.
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The state minister added that if Russia was willing to sell oil to Pakistanat cheaper rates, the government would definitely consider the option butwould “ensure striking deals which would not result in any types ofinternational sanctions on Pakistan.”
On the other hand, Finance Minister Miftah Ismail had earlier this monthsaid that Western sanctions have made importing oil from Moscow impossibledespite the Pakistani government’s request to buy wheat from Russia andUkraine.
Miftah had also stated that Pakistan would surely consider if Russia offersoil trade at cheaper rates as there are no restrictions on buying thesupply.
Former finance minister and senior PTI leader Shaukat Tarin also said thatthe coalition government “should have purchased cheap oil from Russia” asthe previous Imran Khan-led government had already written a letter in thisregard.
