SUMMARY:
Pakistan eagerly anticipates the arrival of the first shipment of crude oil from Russia, expecting it to bring relief from the high prices of food and fuel. Minister Ahsan Iqbal clarified that there won’t be a Rs100 reduction in fuel prices as rumored, the import of Russian oil will gradually alleviate the situation. Pakistan plans to import one-third of its crude oil requirements from Moscow, aiming to alleviate financial pressures caused by energy imports. In 2022, Pakistan imported 154,000 barrels of oil per day primarily from Saudi Arabia and the United Arab Emirates.
The initial phase will involve a limited quantity of imported oil, with volumes expected to increase in the coming months.The Pakistani government recently announced plans to import one-third of its total crude oil requirements from Moscow. This move is seen as crucial for a country facing financial challenges, including a balance of payments problem and critically low foreign exchange reserves, as a significant portion of foreign payments is allocated to energy imports.
In 2022, Pakistan imported around 154,000 barrels of oil per day, with Saudi Arabia and the United Arab Emirates being the primary suppliers. The statistics, provided by analytics company Kpler, indicated that imports remained relatively stable compared to the previous year.
Pakistan anticipates that the discounted crude from Russia will provide much-needed relief to its financial situation. Although the minister did not provide specific figures, analysts expect that the discounted crude from Russia will alleviate the strain caused by energy imports and benefit the Pakistani population, which has been grappling with the impact of rising prices for basic necessities.
With the imminent arrival of the initial Russian oil shipment, Pakistan anticipates a progressive amelioration in fuel prices, aiming to alleviate the hardship faced by its citizens battling exorbitant food and fuel expenses.
The long-term objective of importing one-third of its crude oil needs from Russia signifies a strategic transition in Pakistan’s energy trade landscape, potentially fostering future economic stability for the nation.