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Pakistan’s Current Account Deficit shrinks 37% YoY in 1Q of FY23

Sayfullah

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Not feasible:

-only 3 Russian blends are suitable for refinement in pak refineries.

-PNSC cant call on Russian ports so an intermediary is needed

-shipping costs may be up to 10x greater for Russian oil per barrel vs ME oil

-we have long term contracts with the ME for oil

-shipment takes 5-6x longer

-no payment system, ruskies dont want dollars anymore- not like we have any anyway


our 'analysts' claim its possible whereas our refineries dont want to touch it, it makes little economic sense, i wonder whether we will ever get a proper cost vs benefit analysis, because a 5x longer shipping time will make it difficult to adjust for demand, a new payment system may be complicated and take a long time, shipping costs could very well kill off any benefits there were. Unless im misunderstanding, Ural was less than $20 cheaper per barrel, but if we account for the shipping, intermediary, payment fees in the end i dont think the saving there is worth ruining relationships. On top of that, even at record low prices India paid, they were losing alot of money and their oil companies had to be bailed out by the GOI. I suspect the more suitable blends for our refineries may even have less of a discount ! Oh and these prices im pretty sure were for export to the west, the saudis increased pricing for the west and reduced them for asia
What about Iranian oil? We could barter trade with Iranians for oil bypassing sanctions and since iran is right next to us shipping costs would be very low. We can import like 30% of our annual needs for oil from iran and trade something like rice for it thus saving valuable forex while also continuing to import oil from Arabs to keep good relations with them while lowering our total oil import bill.
 

arslank03

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What about Iranian oil? We could barter trade with Iranians for oil bypassing sanctions and since iran is right next to us shipping costs would be very low. We can import like 30% of our annual needs for oil from iran and trade something like rice for it thus saving valuable forex while also continuing to import oil from Arabs to keep good relations with them while lowering our total oil import bill.
Iranian oil is very poor quality! so much so that when alot of people travel by car to pak dread using iranian fuel due to its awful quality
 

Sayfullah

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Iranian oil is very poor quality! so much so that when alot of people travel by car to pak dread using iranian fuel due to its awful quality
Any sources to back this up? A lot of countries pre sanctions bought Iranian oil including China and India.
What about using it for stuff that doesn’t require high quality oil? Also depends on how much cheaper we can get it for because it might be so cheap that it outweighs the negatives of it being low quality.
 

arslank03

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Any sources to back this up? A lot of countries pre sanctions bought Iranian oil including China and India.
What about using it for stuff that doesn’t require high quality oil? Also depends on how much cheaper we can get it for because it might be so cheap that it outweighs the negatives of it being low quality.
cheaper and better quality Russian oil takes their market share, Iran was producing new lighter blends for China, but China also likely had the capabilities to refine it which we dont, hence the russian saga.

 

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