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Russian oil not likely to help reduce petrol price in Pakistan

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  • Russian oil’s heavy, will produce 50% furnace oil: industry people.
  • PRL received first cargo of Russian oil of 45,000 tonnes last week.
  • Some suggest move to import this oil might be politically motivated.

KARACHI: Russian crude oil will produce more furnace oil (FO) than high-speed diesel (HSD), which would not reduce the prices of petroleum products domestically, The News learned Monday.

According to the oil industry players, the arrival of the first cargo of Russian crude oil has been celebrated from the top level of the government to the media.

However, the anticipated reduction in the prices of petroleum products, particularly diesel, and petrol, in the near future would not be possible.

Pakistan Refinery Limited (PRL) received the first cargo of Russian crude oil of 45,000 tonnes on Sunday, and its discharging from the vessel started on Monday.

“The complete discharge of this crude oil will take twenty to thirty hours,” the Karachi Port Trust stated.

On the other hand, the oil industry people believed that the much-talked-about Russian oil was being cherished as a significant achievement, despite its commercial viability not looking promising.

They pointed out that the Russian crude oil was heavy and would produce 50% furnace oil, 32% high-speed diesel, and 18% of the remaining products.

On the other hand, they pointed out that domestic refineries could extract 50% HSD and 25% furnace oil from Arabian crude oil.

They believed that Russian crude oil might disturb the economic pattern of petroleum products from crude oil, and for it to be more commercially viable, the oil price should be at a higher discounted level.

They said that the first Russian cargo was a trial. After its processing, the report of its refining would be forwarded to the government to determine its economic viability for the country.

According to them, the buying of Russian crude oil by the current government also seems to be an attempt to defuse the narrative of the former government of Pakistan Tehreek-e-Insaf (PTI), which continuously castigated the sitting government over dragging its feet from importing crude oil from Russia.

Industry people said that producing more furnace oil from this crude oil would further add to the existing stock of this fuel. Pakistan currently possesses huge stocks of FO in the range of hundreds of thousands of tonnes due to its non-lifting by the local power plants.

They said that Pakistani refineries have struggled to dispose of this massive stock after the power generation plants refused to stockpile FO.

Refineries also exported some of the stock to the international market at a lower price to keep the operations of their refineries running smoothly.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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