EconomyPakistan

Pakistan Welcomes First Russian LPG Shipment, Boosting Energy Ties

Pakistan has received its first shipment of liquified petroleum gas (LPG) from Russia, marking a new chapter in energy cooperation between the two countries. The Russian embassy in Islamabad confirmed the delivery on Tuesday, adding that it was facilitated with the assistance of Iran.

The collaboration between Pakistan and Russia has deepened as the two nations worked out these significant energy deals. This achievement signals Islamabad's intensified energy trade with Russia.

This shipment follows Pakistan’s first-ever delivery of Russian crude oil earlier this year, underlining the strengthening energy ties between Islamabad and Moscow. The Russian embassy revealed that 100,000 metric tonnes of LPG were delivered to Pakistan via Iran’s Sarakhs Special Economic Zone.

While the embassy did not disclose the cost of the LPG or whether it was offered at a discounted rate, it did confirm that discussions regarding a second shipment are currently underway. The details of Iran’s involvement in the transaction were not provided.

It is worth noting that Pakistan paid for the earlier Russian crude oil shipment in Chinese currency, although the exact value of that deal remains undisclosed.

Energy imports constitute a significant portion of Pakistan’s external payments. Therefore, discounted imports from Russia provide much-needed relief for Islamabad as it grapples with an economic crisis and a severe balance of payments problem, which threatens a potential default on its external debt.

The recent energy deals with Russia signify a strategic shift for Pakistan as it seeks to diversify its energy sources and secure more favorable terms to alleviate its economic challenges.

 

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