Pakistan is facing a serious crisis of foreign exchange reserves, in such a situation, Russian crude oil will provide a big relief to it. Energy imports account for a major portion of the country’s external payments. Malik told Reuters on Wednesday night that under the deal, Pakistan would buy only crude oil. If the first transaction goes smoothly, imports are expected to reach 100,000 barrels per day.
In which currency will the payment be made?
According to the news of The Express Tribune, Pakistan will import 1,54,000 barrels of oil per day in 2022. Most of the crude oil was supplied by Saudi Arabia and the United Arab Emirates. If Russian crude oil supplies reach 100,000 barrels per day, it would be a potentially major drawdown for Pakistan’s Gulf suppliers. The Pakistani minister did not say whether the Chinese yuan and the UAE dirham would be used as currencies for the transactions as the country is facing a dollar shortage.
Pakistan International Beggar: Pakistan is not a beggar, whom does the Finance Minister of Pakistan want to assure?
Oil from Russia, arms to Ukraine
Analysts say that Pakistan must have faced many difficulties in accepting the crude oil deal but the country is in dire need of funding. Pakistan is an old ally of the West and a staunch opponent of India, a close friend of Russia. Pakistan buying cheap oil and wheat from Russia is strengthening the hands of its enemy in the war. According to a report in The Sunday Guardian, Pakistan is supplying large quantities of ammunition to Ukraine. The report claims that in the last few months, Pakistan has sent at least 170 containers to Ukraine through the sea route. These ships have reached Ukraine via Germany.