Pakistan all set to get discounted Russian oil, PM Shahbaz tells parliament

Tariq Butt, Correspondent / Reuters

Pakistan’s Prime Minister Shahbaz Sharif said on Thursday that everything was set for his country to receive a shipment of discounted Russian oil.

"As we speak, the Russian oil is being loaded to arrive here," he told the National Assembly (NA).

Petroleum Minister Musadik Malik told reporters last week that Pakistan had made its first purchase of cut-price Russian crude.

The discounted purchase offers much needed respite to cash-strapped Pakistan, which has been struggling to avert a balance of payments crisis as it awaits an IMF deal.

Foreign exchange reserves at the country's central bank have fallen to barely cover a month of controlled imports. Energy imports make up the majority of its external payments.

The deal will see Pakistan buy only crude oil, not refined fuels, with Islamabad to target imports to reach 100,000 barrels per day (bpd) if the first transaction goes through smoothly, according to Malik, who said the first cargo was likely to dock at Karachi port in May.

Pakistan Refinery Limited (PRL) will initially refine the Russian crude in a trial run, followed by Pak-Arab Refinery Limited (PARCO) and other refineries later.

Russia hasn't yet commented on the deal, which gives Moscow a new outlet, adding to its growing sales to India and China - also often at a discount - as it redirects oil from Western markets following sanctions over its invasion of Ukraine.

PM wins vote of confidence

In a separate development, Shahbaz secured a surprise vote of confidence from the National Assembly on Thursday, with 180 lawmakers reposing trust in his leadership as the premier.

The resolution for the trust vote, moved by Foreign Minister Bilawal Bhutto-Zardari, stated: "The National Assembly of the Islamic Republic of Pakistan reposes its full confidence in the leadership of Muhammad Shahbaz Sharif, as the Prime Minister of the Islamic Republic of Pakistan.”

After the resolution was moved, voting was conducted with lawmakers in favour of adopting the resolution rising from their seats.

Subsequently, Speaker Raja Pervaiz Ashraf announced that 180 members of the House had risen from their seats in favour of the resolution.

"Consequently, Muhammad Shahbaz Sharif has obtained the vote of confidence from the National Assembly and commands the confidence of the majority of the members of the National Assembly as prime minister of the Islamic Republic of Pakistan,” the speaker said amid thumping of desks by lawmakers.