KARACHI: A significant milestone has been achieved as the first ship carrying Russian oil arrived at Pakistan’s Karachi port. The vessel brought a total of 45,142 metric tons of crude oil to Pakistan, marking a historic development in bilateral trade relations.
The ship, which arrived ahead of an approaching cyclone, safely anchored at berth OP2 in Karachi. This event comes after Pakistan’s Minister of State for Petroleum, Dr Musadik Malik, announced earlier that the first shipment of 100,000 tons of Russian crude oil would be received at the Oman Port by the end of the month. From there, it would be gradually transported to Pakistani ports by smaller vessels.
I have fulfilled another of my promises to the nation. Glad to announce that the first Russian discounted crude oil cargo has arrived in Karachi and will begin oil discharge tomorrow.
Today is a transformative day. We are moving one step at a time toward prosperity, economic…
— Shehbaz Sharif (@CMShehbaz) June 11, 2023
Experts predict that the launch of shipping services between Russia and Pakistan will reshape trade relations between the two nations, offering immense business opportunities and the potential to elevate bilateral trade to a staggering USD$20 billion.
The direct cargo service will notably reduce shipping time from one month to just 18 days. The first vessel has arrived at Karachi, while the second direct shipment is expected to reach the port by May 29.
Pakistan’s Exports to Russia
Presently, Pakistan’s exports to Russia amount to USD$150 million, while imports hover around USD$300 million. However, the implementation of this direct shipping service is anticipated to boost Pakistani exports to Russia by an estimated USD$2.5 billion in the coming years.
It is worth noting that Pakistan placed its first order for discounted Russian crude oil under a new agreement reached between Islamabad and Moscow on April 20. Initially, Pakistan’s Refinery Limited (PRL) will be responsible for refining the Russian crude, with other refineries to be included in the process after a trial run.
