Officials say Pakistani oil refineries only have capacity to process 30 percent Russian crude oil

The file photo posted on September 20, 2021 shows Cnergyico Pakistan Limited's oil refining complex in Hub, Balochistan. (Cnergyico Pk Limited/Facebook)
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Updated 29 July 2022
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Officials say Pakistani oil refineries only have capacity to process 30 percent Russian crude oil

  • Experts estimate energy imports from Russia could save Pakistan about $3 billion yearly
  • Refinery officials say Pakistan’s plans to import oil from Russia will not disrupt Gulf imports

KARACHI: Officials at refineries in Pakistan have said given “technical and operational constraints,” the South Asia country can only process up to 30 percent of Russian varieties of crude oil, as Pakistan explores cheaper import options and experts warn a deal with Moscow could become a new source of friction between Pakistan and the United States.

Pakistan’s energy ministry last month sought recommendations from industrial experts and major local refineries on importing crude oil from Russia, asking for input on the technical suitability of crude grades, quantity and transportation of freight in comparison with imports from the Middle East. The government specifically sought advice on “payment methodology” in case of crude oil import and “existing commitment to upliftment from the Arab Gulf region with respect to term contracts.”

Pakistan’s energy and power ministers did not respond to repeated Arab News queries about the government’s plans following responses by refineries to the energy ministry’s letter.

But several Pakistani oil refinery officials interviewed by Arab News said they had informed the government in their replies the main problem with a deal with Moscow was that only up to 30 percent of Russian crude could be processed at local refineries, given their current configuration.

“The current configuration of plants supports up to 30 percent of Russian oil refining due to technical and operational constraints,” a top official at a local refinery, who spoke on condition of anonymity, said.

“But the real problem is how the payments would be made under present circumstances and how their LCs [letters of credit] would be processed as Russian banking channels are closed for international payments.”

A number of Pakistani refineries said they had informed the government they could only process certain grades of Russian crude, including Sokol, Sakhalin Light and Eastern Siberian Pacific Ocean (ESPO).

“Byco has responded to the government and we have said that Byco can refine Russian oil but there are limitations,” said Mohammad Wasi Khan, chairman of the Cnergyico petroleum refining company, formerly known as Byco.

Officials at petroleum refineries also said they had apprised the government of supply constraints as some coastlines were located far away and it would take about 16 to 22 days to deliver oil to Karachi.

On the other hand, Pakistani financial analysts estimate energy imports, including crude oil and refined products from Russia, could save Pakistan about $3 billion a year.

“Russians can also provide petrol, diesel, crude oil, and liquefied natural gas [LNG],” said Samiullah Tariq, director of research at the Pakistan-Kuwait Investment Company. “Assuming it’s at a 25 percent discount from prevailing market rates, Pakistan can save more than $3 billion annually,” he added.

Pakistan’s oil imports during 11 months of the last fiscal year, from July 2021 until May 2022, rose by 99 percent to $19.7 billion, including $10 billion imports of refined products and $4.7 billion worth of crude.

As Pakistan evaluates the costs and benefits of Russian oil imports, experts said since Pakistan had no pre-existing contract to buy oil from Russia, it would be hard to expect exemptions from international sanctions.

“It is very unlikely that a new contract by Pakistan will get such exemption,” Husain Haqqani, a scholar at the Hudson Institute in the US, told Arab News. “It will not be easy for Pakistan to pay for the oil, to get insurance for tankers that ship it, and to handle the consequences of violating sanctions.”

“The United States and western Europe will not be happy if Pakistan violates sanctions and starts buying oil from Russia in the midst of Ukraine war,” he added. “Given that US-Pakistan relations are already strained, this would be a new source of tension, which is completely avoidable.”

Analysts and refinery officials also said despite Pakistan’s plans to import oil from Russia, it would continue to secure its petroleum imports from Gulf countries.

Refinery officials said they would fulfill long-term contracts made with the Gulf region’s oil producers and assured that the supply from the region would not be disturbed.

“Three refineries have long-term contracts with Gulf oil producers and as the refineries have confirmed they can refine only 30 percent Russian oil, it means the rest of the volume will come from the Gulf region,” the refinery official, who wished to remain anonymous, said.

Some experts also believe Pakistan may be in a position to gradually import Russian oil despite pressure from Washington.

“In order to secure its energy [needs], Pakistan can buy cheap Russian oil, and despite American pressure, Islamabad can continue importing oil from Russia to some extent, but I think Islamabad will eventually be able to import cheap Russian oil,” Dr. Umud Shokri, a Washington-based senior foreign policy adviser and energy strategist, told Arab News.

“Despite pressure from the US, India has continued to buy cheap oil from Russia, while China’s oil imports from Russia have also increased due to the energy crisis and the increase in oil prices,” he said. “Energy consuming countries such as Pakistan want to diversify their energy sources and buy oil and gas. The Russian embargo has caused countries to increase the import of cheap Russian oil.”

The option of crude imports from Russia came into the limelight after now ousted premier Imran Khan, who arrived in Russia in February the day it launched a full-scale invasion of Ukraine, said Moscow was willing to offer oil at cheaper rates to Pakistan.

Pakistan’s Finance Minister Miftah Ismail, who is in the new cabinet of PM Shehbaz Sharif, has rubbished Khan’s claims and said Islamabad would be willing to buy oil at cheaper rates from Russia only if Moscow made the offer and Islamabad didn’t have to face sanctions on the deal.


Pakistan says 96% of children vaccinated in ongoing anti-polio drive

Updated 31 May 2025
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Pakistan says 96% of children vaccinated in ongoing anti-polio drive

  • Pakistan launched the campaign after 74 children were diagnosed with polio last year
  • Balochistan offered swings and camel rides in Quetta to draw children for vaccination

KARACHI: Polio vaccinations continued across Pakistan for the sixth consecutive day on Saturday, with 96% of targeted children receiving doses during the first five days of the campaign, the country’s National Emergency Operations Center (NEOC) said in a statement.

Pakistan remains one of only two countries in the world where polio is still endemic, alongside neighboring Afghanistan.

Efforts to eliminate the disease have been hampered by parental refusals, widespread misinformation and repeated attacks on polio workers by militant groups.

In remote and volatile areas, vaccination teams often operate under police protection, though security personnel themselves have also been targeted during these campaigns.

“During the first five days, 96% of children across the country have been administered polio drops,” the NEOC said at the start of the campaign’s sixth day.

“The vaccination campaign is underway simultaneously in Pakistan and Afghanistan,” it continued, adding this was to curb cross-border transmission of the virus, especially in frontier regions where mobility between the two countries remains high.

According to Pakistani officials, the current vaccination drive aims to reach more than 45 million children nationwide. It is part of Pakistan’s intensified response following a sharp uptick in cases last year, when 74 children were diagnosed with the crippling virus.

Ten cases have been reported so far in 2025, prompting authorities to step up outreach and door-to-door campaigns.

According to the NEOC, provincial breakdowns so far show 97% coverage in Khyber Pakhtunkhwa, 96% in both Punjab and Balochistan, 94% in Sindh, 98% in Azad Jammu and Kashmir and 101% in Gilgit-Baltistan, where more children were reached than initially estimated.

Islamabad reported 97% coverage.

In Balochistan, the country’s most underdeveloped province that reported 27 cases last year, local authorities introduced recreational activities such as free swings and camel rides in Quetta to attract children and facilitate their vaccination.

The effort drew large crowds, allowing teams to immunize children while they took part in the festivities.

“This initiative is critically important as we enter the high-transmission season,” said Ziaur Rehman, spokesperson for Pakistan’s Polio Program. “It will play a key role in timely containment of the virus.”

He urged parents to ensure that all children under five receive polio drops to protect them from lifelong disability.


PM Sharif announces 25% federal development share for insurgency-hit Balochistan

Updated 31 May 2025
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PM Sharif announces 25% federal development share for insurgency-hit Balochistan

  • The prime minister calls for efforts to bring back ‘misguided’ individuals who have joined militant groups
  • He recognizes Balochistan’s history of economic deprivations but says ‘terrorists’ know nothing but brutality

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday said Pakistan’s restive southwestern province of Balochistan will receive 25% share from the Public Sector Development Program (PSDP) in the upcoming budget, as the government continues to grapple with a decades-long separatist insurgency that has surged in recent years.

Balochistan, Pakistan’s largest but least populated province, is strategically significant as the centerpiece of the multibillion-dollar China-Pakistan Economic Corridor (CPEC), a major infrastructure development and regional connectivity initiative linking western China to the Arabian Sea.

While the state touts CPEC as a game-changer for the region’s development, Baloch separatist groups accuse the government of exploiting the province’s vast mineral resources without benefiting the local population. Officials reject the narrative, pointing to ongoing investments in various sectors aimed at improving livelihoods.

Sharif announced the allocation while addressing a grand jirga, an assembly of provincial elders and influential figures alongside top military leadership, in Quetta, where he reaffirmed the government’s commitment to Balochistan’s development.

“I think that PSDP will be of Rs1,000 billion [in the next budget],” he told the gathering. “So, out of this [amount], a fund of approximately Rs250 billion is for Balochistan alone. That is, 25% of the total federal PSDP for Balochistan.”

The PSDP is Pakistan’s central development program used to fund infrastructure, energy, education and other long-term public investment projects across the country.

It includes both federal initiatives and financial support for provincial projects, particularly in underdeveloped regions like Balochistan.

The prime minister said the allocation was the province’s “right.”

“Along with this,” he continued, “these resources should be used transparently, whether it is Gwadar, whether it is Pasni, whether it is Chaman, whether it is Killa Saifullah, whether it is Quetta, whether it is Jhal Magsi or any other areas,” he continued. “Every single penny there should be used honestly for the development and prosperity of the people.”

Addressing the challenge of militancy in the province, Sharif said efforts must continue to bring back “misguided” individuals who had joined militant groups.

He acknowledged Balochistan’s history of economic deprivation, while reiterating that those engaged in violence offer no solutions.

“Terrorists do not know anything but brutality,” he said.

Calling for national unity, Sharif maintained: “Let’s sit together and talk. It is only by sitting together that a family becomes strong and prosperous. No evil eye can harm a united household.”


Pakistan to set up maritime chamber to boost blue economy, promote greener ports

Updated 31 May 2025
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Pakistan to set up maritime chamber to boost blue economy, promote greener ports

  • Maritime minister says new chamber will unite industry to drive sustainable growth and long-term economic resilience
  • Pakistan aims to grow its blue economy through sustainable use of ocean resources for jobs and ecosystem health

KARACHI: The Pakistan government on Saturday announced the creation of a new Maritime Chamber of Commerce and Industry (MCCI) to promote sustainable development in the country’s coastal and marine sectors, saying the initiative would help strengthen the country’s blue economy while addressing rising climate risks at its ports.

Addressing the Pakistan Business Council Forum, Federal Minister for Maritime Affairs Junaid Anwar Chaudhry said Pakistan’s coastal zones were increasingly exposed to environmental challenges such as rising sea levels, extreme weather events and marine degradation.

The new chamber, he noted, would serve as a specialized platform for uniting stakeholders from across the maritime spectrum to pursue greener policies and long-term economic resilience.

“This chamber will not only support investment and innovation in the maritime sector but also prioritize sustainability at ports, promote green technologies and foster carbon reduction strategies,” he told the participants of the forum.

Pakistan is striving to strengthen blue economy by ensuring the sustainable use of ocean resources for economic growth, jobs and ecosystem health.

This requires the authorities to enhance the potential of its ports, fisheries, logistics and marine services while reducing environmental harm.

The new chamber is expected to provide a unified institutional voice for sectors ranging from shipping to coastal tourism, helping to align business incentives with climate adaptation goals.

Pakistan has been pushing to modernize its port infrastructure and expand its role in regional trade by improving cargo handling, digitalizing port operations and encouraging public-private partnerships.

The country has also invited landlocked Central Asian states to use its ports to access global markets, aiming to position itself as a regional trade hub.

The Pakistan Business Council welcomed the announcement, calling the new chamber a critical step toward building a climate-resilient and economically vibrant maritime economy.


Pakistan PM says Indian bid to set ‘new norm’ thwarted, vows focus on economy and governance

Updated 31 May 2025
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Pakistan PM says Indian bid to set ‘new norm’ thwarted, vows focus on economy and governance

  • Shehbaz Sharif tells military officials in Quetta India suffered setbacks on battlefield and in diplomatic realm
  • He reiterates that New Delhi will not be allowed to ‘weaponize water,’ calling IWT suspension a ‘red line’

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday highlighted a range of security threats facing Pakistan days after a military standoff with India, saying New Delhi’s attempt to establish a “new norm” by targeting his country at will had been thwarted, though Pakistan must now focus on strengthening economy and governance.

The remarks came during a televised address to senior military officers at the Command and Staff College in Quetta, where the premier recounted the recent escalation between the two nuclear-armed neighbors.

The flare-up followed an April attack on tourists in Indian-administered Kashmir, which New Delhi blamed on a Pakistan. Islamabad denied the allegation and called for an impartial probe, but tensions rapidly escalated into four days of cross-border hostilities, ending after a US-brokered ceasefire on May 10.

“The threats we face are no longer limited to conventional battlefields,” Sharif said during his address. “They are multifaceted, ranging from kinetic warfare to cyberattacks, economic coercion to disinformation campaigns and hybrid threats that challenge both our borders and our ideological frontiers.”

“The recent Indian aggression against Pakistan, violating our territorial integrity and targeting our innocent civilians, was not merely countered successfully, but instead we succeeded in turning the tables on those who were dreaming of establishing a new norm,” he said.

Sharif added that Pakistan accepted the ceasefire offer “in the interest of peace, progress and prosperity in South Asia,” asserting that India’s claim of a new strategic precedent “was buried for all times to come by our brave armed forces.”

“In fact, it was Pakistan that established the new norm in its relations with India,” he said. “Henceforth, we will not allow her to behave in an arrogant and haughty manner.”

The prime minister said India had suffered “serious setbacks in both warfare and finest diplomacy” during the episode.

Turning to domestic matters, Sharif said while the military had fulfilled its responsibility, Pakistan still faced “major challenges in the field of economy and governance.”

He cited the dire financial situation when his administration took office, saying it compelled Pakistan to seek external assistance from lenders such as the International Monetary Fund (IMF).

However, he maintained the economy had since stabilized and was now on a positive trajectory.

The prime minister also criticized India’s recent move to suspend the Indus Waters Treaty (IWT), a World Bank-brokered water-sharing agreement signed in 1960, reiterating it was unacceptable to his country.

“We will not allow India to weaponize water by holding the Indus Waters Treaty in abeyance,” he said. “This is an absolute red line for us.”


Pakistan’s Arshad Nadeem reigns supreme with javelin gold at Asian Athletics Championships

Updated 31 May 2025
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Pakistan’s Arshad Nadeem reigns supreme with javelin gold at Asian Athletics Championships

  • India’s Sachin Yadav won silver with an 85.16m throw, while Japan’s Yuta Sakiyama took bronze by throwing 83.75m
  • Nadeem made history at 2024 Paris Olympics by winning Pakistan’s first athletics gold with a record throw of 92.97m

ISLAMABAD: Pakistani Olympic champion Arshad Nadeem on Saturday won gold with a massive 86.4-meter throw in the men’s javelin final at the Asian Athletics Championships in Gumi, South Korea, Pakistani state media reported.

Nadeem is the first Pakistani in over 50 years to win a gold medal at the Asian Athletics Championships. Pakistan’s Allah Daad last topped the podium in javelin throw and Muhammad Younis won the 800-meter event in 1973.

“Arshad Nadeem has once again made the nation proud by making a massive 86.40 meter throw and led the field in the men’s Javelin final at the Asian Athletics Championship in Gumi,” the state-run Radio Pakistan broadcaster reported.

In Saturday’s event, India’s Sachin Yadav won silver with an 85.16m throw, while Japan’s Yuta Sakiyama took bronze with an 83.75m throw. Both threw their personal best.

Nadeem advanced to the final with a powerful throw of 86.34 meters on his first and only attempt in the A qualification round on Friday.

He made history at the 2024 Paris Olympics by winning Pakistan’s first-ever athletics gold with a record-breaking javelin throw of 92.97 meters. His throw not only set a new Olympic and Asian record but also ended Pakistan’s 32-year Olympic medal drought.

Nadeem has since become a national hero, inspiring millions with his journey from humble beginnings in smalltown Mian Channu to the top of the Olympic podium.