Pakistan has placed its first order for discounted Russian crude oil under a new deal struck between Islamabad and Moscow, State Minister for Petroleum Musadik Malik has said.

“Our orders are in, we have placed that already,” he told Reuters in an interview on Wednesday night, adding that one cargo of the commodity will dock at the Karachi port in May.

The deal will see Pakistan buy crude oil only, not refined oil, and imports are expected to reach 100,000 barrels per day if the first transaction goes through smoothly, he said.

The minister added that Pakistan’s Refinery Limited will initially refine the Russian crude, with other refineries to be included later after a trial run.

Finance Minister Ishaq Dar last year had announced that the country was considering buying discounted Russian oil, pointing out that neighbour India has been purchasing oil from Moscow and Islamabad also had a right to explore the possibility.

Subsequently, Malik had flown to Moscow for talks on issues including oil and gas supplies after which the government announced that it would purchase discounted crude oil, petrol, and diesel from Russia.

In January 2023, a Russian delegation arrived in Islamabad for talks to finalise the deal. During the three-day meeting, the countries decided to address all technical issues — insurance, transportation and payment mechanism — to sign an agreement by late March this year.

“After consensus on the technical specifications achi­eved, the oil and gas trade transaction will be structured in a way it has a mutual economic benefit for both countries,” a joint statement issued by the two sides had then stated.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Rinse and repeat
Updated 07 Jun, 2023

Rinse and repeat

Pakistan's Groundhog Day politics continue without missing a beat.
Reimagining airports
07 Jun, 2023

Reimagining airports

AIRPORTS across the world have transformed themselves. No longer are they mere hubs for air travel; they now offer...
Transgender healthcare
07 Jun, 2023

Transgender healthcare

OUR social and political structures have sent the transgender population to Coventry. Anathema and misconception ...
Populist budget?
Updated 06 Jun, 2023

Populist budget?

The upcoming budget will be more a test of the govt's resolve to stay the course and restructure the economy.
Odisha disaster
06 Jun, 2023

Odisha disaster

THE horrific train crash in India’s eastern state of Odisha should prompt authorities across the subcontinent to...
Hockey revival
06 Jun, 2023

Hockey revival

FOR the last decade, Pakistan hockey has been searching for that turning point where its misfortunes are reversed....