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Pakistan eyes importing 1m tonnes of Russian oil per year

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1 year ago

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  • First import of crude oil shipment arrived in June.
  • Second govt-to-govt cargo is being negotiated.
  • Cnergyico imported Russian crude oil cargo last week.

MOSCOW: Pakistan’s Caretaker Energy Minister Mohammad Ali said Islamabad was mulling to sign a long-term agreement to purchase between 0.7 million and 1 million tons (up to 20,000 bpd) of Russian oil per year, The News reported on Friday, quoting TASS, a Russian news agency.

After the export of Russian crude oil was banned from European markets following Moscow’s Ukraine invasion, Pakistan has attempted to benefit from buying the commodity at cheaper prices.

The first import of crude oil shipment arrived in Pakistan in June this year, while the second government-to-government cargo is being negotiated. Pakistan refiner Cnergyico, last week, imported the first-ever private-sector shipment of crude oil from Russia.

Grappling with high inflation and a foreign exchange crisis, Pakistan has also struggled with spot purchases of Liquified Natural Gas (LNG) after Russia’s invasion of Ukraine last year pushed prices to record highs, leaving the South Asian nation to face widespread power outages.

Earlier this month, Pakistan LNG Limited (PLL), a government subsidiary that procures LNG from the international market, awarded a tender to commodities trader Vitol for the delivery of a liquefied natural gas (LNG) cargo in December, making it the country’s first spot purchase in over a year.

Islamabad, early in October, was scheduled to discuss a long-term programme for the import of discounted crude oil from Russia with Moscow next week, as the government sought to diversify its energy supplies at cheaper rates.

A Pakistani delegation, headed by the interim energy minister, was scheduled to attend the Russian Energy Week 2023 on October 11-13 at the Manege Central Exhibition Hall in the Russian capital.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Business

Discos report losses of Rs239 billion.

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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