First cargo of discounted Russian crude arrives in Karachi, says PM Shehbaz

Prime Minister Shehbaz Sharif announced on Sunday the first cargo of discounted Russian oil has arrived in the country, calling it “a step toward energy security”.

“I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow,” he said in a tweet.

The premier termed this development “a step at a time toward prosperity, economic growth, and energy security & affordability.”

He said this was the beginning of a new relationship between Pakistan and the Russian Federation.

“I commend all those who remained part of this national endeavor & contributed to translating the promise of Russian oil import into reality.”

In March, State Minister for Petroleum Dr Musadik Malik had said that under the Pak-Russia agreement, oil and gas will start reaching Pakistan this year, which would help provide relief to people.

It was also reported earlier in April that Pakistan placed its first order for discounted Russian crude oil. The deal will see Pakistan buy crude oil only, not refined fuels, and imports are expected to reach 100,000 barrels per day if the first transaction goes through smoothly, Malik had said.

Oil and energy make up the largest portion of Pakistan’s import bill and the country is struggling with a balance of payments crises due to dwindling foreign reserves.

Meanwhile, the South Asian nation has also struggled to procure liquefied natural gas (LNG) from the international market because of high spot prices, adding to its ongoing energy woes.

With dwindling local gas reserves, the country began to ration supplies to residential and commercial consumers.