Pakistani Oil Minister Musadik Malik stated on Monday that Pakistan paid for its first government imports of discounted Russian crude oil using Chinese currency, marking a significant shift in its foreign payment policy, which has been dominated by the US dollar. The Pakistani minister did not disclose details of the deal to Reuters over the phone, including its price or the amount of discount Pakistan received, but he indicated that the payment was made in Chinese currency. He clarified that the deal comprises 100,000 tons, with 45,000 tons having arrived at the Karachi port and the remaining quantity on the way.
The first shipment of discounted Russian crude oil reached Karachi on Sunday under an agreement made between Islamabad and Moscow earlier this year. The cargo is currently being unloaded at the Karachi port in the south. The discounted oil provides relief for the country as it grapples with an economic crisis and severe balance of payments issues, which could force it to default on its external debts. The central bank's foreign currency reserves barely cover a month of restricted imports.
