ISLAMABAD: The State Minister for Petroleum, Dr Musadik Malik, on Wednesday said that talks with Russia are continuing to buy a second shipment of discounted crude oil.

Speaking at a presser, he said that there was no scenario under which the country was not benefiting from Russian crude as “we are finalising another cargo”.

He said that the first cargo of 100,000 tons of Russian Urals had been successfully tested at the state-run Pakistan Refinery Limited (PRL), despite limitations such as higher freight and insurance costs, and producing more furnace oil after refining compared with Arabian light oil.

First-ever crude-laden Russian ship arrives

“It [Russian oil] will still benefit us,” he added.

However, he did not disclose the quantity of oil under discussion for the second consignment.

He also declined to give the details on the price or discount of the first shipment.

Malik said that a private entity, Pak-Arab Refinery Limited (PARCO) had also been asked to import Russian crude. “We have also requested Parco’s board to consider and import it,” he said.

About imports of petroleum products, he said “Our deal with Russia will benefit us in all aspects while agreements with the United Arab Emirates and Azerbaijan are in the process of finalization”.

Meanwhile, he strongly denounced Israel’s comments on Pakistan particularly on the human rights situation at the time when Israel itself has a history of massive human rights violations.

He alleged that it is surprising that Israel’s comments come in favour of Pakistan Tehreek-e-Insaf (PTI), which “instigated, planned, and carried out violent attacks against state institutions and buildings on May 9”.

“It’s a fact that Israel has been oppressing Palestinian people for decades, mercilessly killing innocent civilians and children, and now it talks about human rights violations in Pakistan which is absurd,” he regretted.

REUTERS ADDS: Pakistan got into Russian the deal in part to save on foreign exchange reserves, which are used mainly on oil imports.

The country 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.

OPPORTUNITY

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.

Copyright Business Recorder, 2023

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