Pakistan has placed its first order for discounted Russian crude oil under a new deal struck between Islamabad and Moscow, the country’s petroleum minister said, with one cargo to dock at Karachi port in May.
Pakistan’s purchase gives Russia a new outlet for its crude, adding to Moscow’s growing sales to India and China, as it redirects volumes from western markets where its oil has been banned in the wake of the Ukraine conflict.
Discounted crude offers much needed respite to cash-strapped Pakistan in the face of a balance of payments crisis and critically low foreign exchange reserves. Energy imports make up the majority of the country’s external payments.
