Minister of State for Petroleum, Musadik Malik while addressing a press conference in Islamabad said that on purchase of oil from Russia, the payment was made in RMB. RMB is the official name of Chinese currency.The Minister did not disclose the other details about this commercial deal.
Later, the Ministry of Foreign Affairs, China issued a statement which says, This is normal trade cooperation between Pakistan and Russia and within the scope of their sovereignty. As a matter of principle, we are open to the settlement of crude oil trade in RMB.
The economists of the country call this deal a big step which presents a new avenue for Pakistan at a time when its financial needs are high. In another step, Pakistan is in process of opening barter trade with Russia, Afghanistan and Iran which is undoubtedly a big jump towards trade cooperation with the regional states.
Musadik Malik said that the Russian oil will be initially refined by the Pakistan Refinery Limited (PRL). He had earlier referred to the purchase of this oil as a trial run to judge financial and technical feasibility.
He said that all the tests and trials had been done which found the Russian oil fit to refine and market locally. Pakistans big foreign exchange is spent on the purchase of energy items from abroad. In the year 2022 and 2021, about 154,000 bpd of oil was imported.
The minister said that the purchase of crude oil from Russia will provide the government an opportunity to relieve the people financially.
The Minister told the newsmen that initially, 100,000 tons of crude oil has been imported from Russia, the quantity of which would be increased gradually.
He informed that Pakistan has received a contract from Azerbaijan. He said, Under the contract, the Central Asian country would provide Pakistan a distressed LNG cargo monthly. The LNG price would be much lower than in the international market.
He added that it would be Pakistans prerogative to accept the cargo or not, Azerbaijan would be obligated to give us the LNG monthly.
The Minister of State said that Pakistan had offered the European countries to establish LNG plants in country so Pakistan could become the transit route for gas transportation from central Asian states to Europe