Wednesday, 6 August 2025

Should Pakistan Import US Crude Oil?

Deciding whether Pakistan should import crude oil from the United States depends on multiple strategic, economic, and diplomatic factors. Here’s a balanced assessment based on the latest data and projections:

Pakistan is slated to take delivery of its first-ever US crude oil, one million barrel cargo of light WTI crude from Vitol, expected to arrive in October 2025 at Cnergyico’s refinery in Karachi. This marks a pilot spot cargo—if successful, Cnergyico may import one cargo per month thereafter

The move is part of a broader US–Pakistan trade agreement focused on oil and energy cooperation, and to mitigate threatened 29% tariffs on Pakistani exports.

Advantages of US Crude Imports

Energy source diversification
Breaking reliance on Middle Eastern suppliers - Saudi Arabia and UAE)—who currently account for nearly all of Pakistan’s crude oil imports—enhances energy security and geopolitical flexibility.

Refinery compatibility
Pakistan's largest refinery can process WTI Midland and cactus grades without blending adjustments and may boost gasoline/ middle distillate production, easing import reliance on refined products.

Trade diplomacy tool
Importing US crude may be used strategically in tariff negotiation, potentially lowering or avoiding the 29% US duty on Pakistani exports by helping balance trade flows.

Challenges and Risks

Higher logistics cost
Freight, insurance, and handling add around US$3 per barrel compared to regional supplies. This higher cost may strain forex reserves unless oil price spreads narrow.

Foreign exchange pressure and inflation

Larger import bill could put pressure on currency reserves and stoke inflation, especially if fuel prices are subsidized domestically.

Limited climate if not managed well
US imports should be a strategic supplement rather than a primary sourcing route, since over-dependence on long-distance crude can worsen trade and fiscal balances.

Key Considerations

Factor

Rationale

Volume

Target of 10% of total crude imports, around US$ one billion annually

Pricing Arbitrage

WTI's lighter quality and higher gasoline yield might offset additional logistics cost, assuming favourable price spreads

Refinery Capacity

Cnergyico’s SPM-equipped 156,000 bpd plant is record-compatible; no major technical hurdles noted

Strategic Diplomacy

The imports offer Pakistan leverage in US tariff negotiations and broader market access

The logical reply is that as part of a broader strategy Pakistan should import US crude oil. Use it to boost export negotiation leverage with the US. Diversify sources to improve energy resilience. Leverage light US crude to enhance domestic fuel yields.

Tread carefully

Limiting imports to a test/ pilot phase to assess cost, logistics, and yield economics. Monitoring global price differentials—if WTI premiums shrink relative to Gulf crude, US imports may become more viable long-term. Avoiding overreliance—continue importing most crude from Gulf suppliers with more favorable logistics and financing terms.

Moral of the story

Pakistan is entering a strategic test phase, set to receive one million barrels of US WTI oil in October 2025. If successful, limited monthly imports (10%) can support export negotiations, diversify supply, and potentially improve gasoline yields—even at some added logistical cost. However, unless price arbitrage improves, US crude should remain a tactical supplement, not replace traditional Gulf suppliers.

Tuesday, 5 August 2025

Significance of Iranian President's visit to Pakistan

The world knows that Iran was the first country to recognize Pakistan’s independence in 1947 and open its embassy in Karachi, which was then the capital of Pakistan. Likewise, Pakistanis were the first to officially recognize the victory of the Islamic Revolution in Iran in 1979.

The people of both countries share cultural, linguistic, historical, and religious ties, and have supported each other in both bitter and sweet moments throughout history. The cultural commonalities between the two nations are such that citizens of either country do not feel estranged or alien when traveling to the neighboring country.

In Tehran, prominent places such as Mohammad Ali Jinnah Highway and Pakistan Street exist. Likewise, in major Pakistani cities, including Karachi, street signs bearing names like Iran Avenue and streets named after Iranian poets like Ferdowsi, Saadi, Hafez, Khayyam, and others can be found.

Islamabad, the capital of the Islamic Republic of Pakistan, hosted Dr. Pezeshkian, President of Iran, and his accompanying delegation from August 02 to 03, 2025. This was, in fact, Pezeshkian’s first official visit to Pakistan since winning Iran’s 14th presidential election.

It is worth noting that in April 2024, the martyred Ayatollah Raisi also made a three-day visit to Pakistan, including the cities of Lahore, Karachi, and Islamabad, where he was warmly welcomed by the people and officials of that country. Following the helicopter crash and martyrdom of Ayatollah Raisi and his companions, Prime Minister Shehbaz Sharif of Pakistan, along with other officials, traveled to Tehran to pay their respects and attend the memorial ceremony.

In May of this year, Shehbaz Sharif once again visited Tehran to express his gratitude for Iran’s stance regarding the India-Pakistan war. Therefore, Dr. Pezeshkian’s recent visit was in response to Shehbaz Sharif’s invitation and, essentially, a reciprocation of his visit to Tehran.

Dr. Pezeshkian began his official visit in Lahore, the capital of Punjab province, by paying respects at the mausoleum of Allama Iqbal, the Pakistani philosopher and poet. It is said that over 8,000 verses of Iqbal’s poetry comprising 70% of his total works are written in Persian.

During the continuation of the visit in Islamabad, the Iranian delegation met with the Prime Minister, President, Foreign Minister, Army Chief, Speakers of the Senate and National Assembly, and Pakistani business community, seeking to implement the "Neighbor First" policy in practice. 

The current volume of annual trade between the two countries is about US$3 billion, yet many economic and commercial potentials remain untapped. During this recent visit, 12 cooperation agreements were signed in areas such as transportation, science and technology, tourism, and free trade, which, if implemented, could significantly boost bilateral relations.

One indicator of strong political relations is the frequent travel of officials between countries. In less than two years, top officials from Iran and Pakistan have visited each other’s countries four times, not including the meetings held on the sidelines of key regional and international summits. These frequent meetings highlight the close bond and significance of the relationship particularly now, when there is a growing need to expand cooperation.

Over the past few decades, Iran-Pakistan relations have enjoyed relative stability, and mutual visits and exchanges between officials have been a regular occurrence. What gives special importance to the recent presidential visit to Pakistan is the unique political situation and the developments that have taken place in recent months in South and West Asia and even globally.

The four-day war between India and Pakistan in May 2025, as two nuclear powers, created a highly sensitive situation in the region. Although brief, the consequences of this conflict continue to affect both countries and the broader region and world.

Additionally, the ongoing war and genocide in Gaza have significantly influenced global politics. In this context, the stances of Islamic countries such as Iran and Pakistan are of great importance. Tehran and Islamabad have consistently adopted shared, firm positions and have emphasized full support for the Palestinian cause. The 12-day imposed war by Israel on Iran drastically altered the geopolitics of the region and the Islamic world.

Pakistan’s positions as one of the largest and most influential Muslim nations and a nuclear power have been crucial, and the Iranian public and officials have always appreciated Pakistan’s brave and brotherly stance.

Islamabad's officials have expressed their appreciation, in various ways, for Iran’s goodwill and initiative in offering to mediate between the two countries, and for the highly important visit of Iran’s Foreign Minister Dr. Araghchi to Pakistan and India to reduce the tensions.

A key factor linking Iran and Pakistan’s foreign policies is the sensitivity of public opinion in both nations toward the Palestinian issue and their mutual opposition to Zionist occupation and crimes in Gaza. This shared stance is rooted in the principled policies laid down by the founding leaders of both nations, Imam Khomeini and Muhammad Ali Jinnah and continues today. Currently, there is deep concern over the joint illegal actions of the Zionist regime and the United States against Iran’s nuclear facilities, and the potential for similar scenarios to be repeated elsewhere.

The condemnation of the Zionist regime’s aggressive attack on Iran by Pakistan’s permanent representative at the UN Security Council, as a non-permanent member and rotating president, was well-received. Pakistan’s support for dialogue and negotiation and its affirmation of Iran’s right to nuclear knowledge were also reflected in the joint press conference held by Shehbaz Sharif and Dr. Pezeshkian.

Iranian and Pakistani officials have come to a shared understanding that the 900 plus km border between the two nations should transition from being a security border to an economic one. The two sides have created joint mechanisms to improve coordination in the fight against terrorism. There exists an ocean of untapped potential in both countries, which requires serious political will to activate. The travel of hundreds of thousands of Pakistani pilgrims as part of religious tourism is one such opportunity.

Currently, two land borders at Rimdan and Mirjaveh are operational, facilitating travel for tourists and traders. Strengthening infrastructure is essential for increasing travel between the two peoples. People-to-people ties and citizen interactions can play a critical role in raising awareness of each other’s capabilities. 

Meeting mutual needs given that the two economies complement each other should be a top priority for private sectors and businesspeople in both nations. Much of what Iran imports from other countries is easily accessible in Pakistan, and Pakistan exports goods that Iranians also import from various sources.

Pakistan can meet many of its needs through Iranian producers and benefit from the proximity and low logistics costs. There is an urgent need to upgrade the joint Iran-Pakistan Chamber of Commerce to play a more significant role.

An Iranian proverb says, “A good neighbor is better than a distant relative.” Pakistan is both a good neighbor and a good relative and we Iranians are grateful for this valued neighbor.

Courtesy: Tehran Times

 

Netanyahu says decision made for full occupation of Gaza

According to media reports, Israeli Prime Minister Benjamin Netanyahu has confirmed that a decision has been made for the full occupation of the Gaza Strip, including military operations in areas where hostages are believed to be held.

"We're committing to free Gaza from the tyranny of these terrorists," Netanyahu said in a video address posted on X. "Many Gazans come to us and they say 'Help us be free. Help us be free of Hamas.' and that's what we will do."

The Prime Minister's Office also said in a message to the Chief of Staff, Lieutenant General Eyal Zamir, "If this does not suit you, then you should resign."

Netanyahu and Zamir have been at odds with the way the war in Gaza is being fought, with those tensions "having reached their peak" on Monday, according to a report on Israeli Army Radio.

Netanyahu's announcement comes after months of faltering talks in Qatar between Israel and Hamas as mediators scramble to overcome hurdles from both sides and reach a ceasefire and hostage release deal as the humanitarian situation in the Strip deteriorates.

That proposal, in the form of a 32-page academic paper titled "Gaza Security and Recovery Program, How Should The Day After Look Like," was authored by the Israel Defence and Security Forum, a group of over 35,000 Israeli security force reservists and the think tank Jerusalem Centre for Security and Foreign Affairs.

The study was presented to the Israeli government at an unknown date and represents one of the future options currently under consideration by Israel for the Gaza Strip.

The proposal entails economic reconstruction, building infrastructure and, as the authors of the study say, "uprooting a murderous ideology," also labelled as a process of "de-Nazification."

"In order to prepare for the new state of affairs, even though the results of the military operation have not yet been achieved, it is necessary to prepare an orderly plan for the control of the Gaza Strip after the fall of Hamas," the document reads.

The plan explicitly excludes the sovereignty of Palestine, or more specifically the Palestinian Authority (PA), or the presence of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) as a source for humanitarian aid.

"No less serious is the foolhardy idea of establishing a Palestinian state in Gaza," the document reads.

However, it is not said in the document whether Israel intends to annex the Strip, although it is clearly stated that Israeli military (IDF) wants to have a greater say in the overall administration of Gaza's affairs.

Netanyahu's comments on Monday contradict those of Israel's Foreign Minister, Gideon Sa'ar, who told Euronews last month that Israel doesn’t have "any intention" of controlling Gaza long term.

"We don't have any intention to do so," Sa’ar said. "With regard to the Gaza Strip, we have only security concerns."

"We will implement President Trump's plan, it is a good plan and makes a difference, and it means something very simple, that the residents of Gaza who want to leave can leave," Netanyahu said, referring to a proposal floated by Trump of resettling all of Gaza's population in other countries.

The plan was met with horror by regional countries and international humanitarian groups, who said the forced resettlement of the population would be a violation of international law.

Trump said he had plans to re-develop Gaza in the "Riviera of the Middle East" with upmarket resort hotels and shopping malls.

Monday, 4 August 2025

Global voices condemn Israeli war and starvation campaign in Gaza

Protests condemning Israel’s devastating war and deliberate starvation campaign in Gaza continue to sweep across the globe, as activists, politicians, and ordinary citizens demand an end to the violence and immediate humanitarian aid.

On Sunday, demonstrators gathered outside the US consulate in Istanbul. They held Palestinian flags and shouted slogans denouncing the Israeli blockade of Gaza, which has caused mass starvation. Their message was clear - the international community must hold Israel accountable for the ongoing atrocities.

Meanwhile, in Sydney, Australia, tens of thousands braved heavy winds and rain to march across the iconic Harbour Bridge in a massive “March for Humanity.” Protesters carried pots and pans, symbolic of the forced starvation endured by Gaza’s population, and called out for a ceasefire and unrestricted delivery of aid.

Police estimated attendance at around 90,000, while organizers said the number could be as high as 300,000.

New South Wales Senator Mehreen Faruqi addressed the crowd, demanding the “harshest sanctions on Israel” and condemning the “massacres” of Palestinians as crimes that must not go unpunished.

Author Antony Loewenstein, whose work exposes the Israeli arms industry, highlighted the Australian government’s role, accusing it of complicity through supplying fighter jets used in Gaza’s bombardment.

Loewenstein pointed out that Australia is deeply entangled in Israel’s war machine, enabling and profiting from the destruction.

The humanitarian crisis in Gaza has reached catastrophic levels. Since October 2023, over 180 people—more than half children—have died from starvation caused by Israel’s siege. Israeli forces have also killed nearly 900 people near aid distribution centers run by the Gaza Humanitarian Foundation, a US- and Israel-backed initiative criticized by Human Rights Watch as “death traps” due to repeated deadly attacks.

Tragically, hundreds more have died attempting to access UN-led food convoys, further underscoring the brutal reality of the siege.

Overall, Israel’s war has claimed the lives of more than 60,800 Palestinians in Gaza, with reports from Israeli human rights groups confirming allegations of genocide—a charge already under investigation at the International Court of Justice.

The deliberate starvation, mass killings, and systematic destruction of Gaza reveal a state policy aimed at collective punishment and ethnic cleansing. This campaign cannot be dismissed as collateral damage or an unfortunate byproduct of war. It is a calculated effort to crush Palestinian resistance by any means necessary.

The world’s silence and inaction in the face of these crimes only embolden Israel’s apartheid regime. Without decisive global intervention, Israel will continue its path of genocide, supported by complicit governments and military suppliers around the world.

Justice for Palestinians demands not only condemnation but concrete measures to end Israel’s siege, hold its leaders accountable, and ensure freedom and dignity for Gaza’s people.

The protests spreading worldwide are a powerful reminder that the fight for Palestinian rights and liberation will not be silenced — and that the struggle against Israeli aggression and oppression must intensify until peace and justice prevail.

 

Pakistan condemns Israeli ministers storming Al Aqsa mosque

Pakistan on Monday unequivocally condemned the storming of the Al-Aqsa Mosque in occupied East Jerusalem by Israeli ministers, calling Tel Aviv out for its “shameless actions which are inflaming tensions in Palestine and the wider region”.

Early on Sunday, Israel’s far-right National Security Minister Itamar Ben-Gvir, shielded by Israeli police, led a large group of illegal settlers in a provocative march and mass incursion into the Al-Aqsa Mosque compound, coinciding with the Jewish commemoration of Tisha B’Av, Anadolu Agency reported.

According to the Jerusalem Islamic Waqf, at least 1,251 illegal Israeli settlers stormed the mosque compound in the morning hours, performing Talmudic rituals, singing, and dancing under heavy police protection.

Al-Aqsa Mosque is the third holiest site in Islam after Makkah and Madina. Under a delicate decades-old “status quo” arrangement with Muslim authorities, the Al-Aqsa compound is administered by a Jordanian religious foundation, and Jews can visit but may not pray there.

“This sacrilege against one of Islam’s holiest sites is not only an affront to the faith of over a billion Muslims but also a direct assault on international law and the collective conscience of humanity,” Prime Minister Shehbaz Sharif posted on X.

He said that such systematic provocations by the occupying power, coupled with reckless calls for annexation, imperiled the prospects for peace.

The prime minister said that Israel’s “shameless actions” were deliberately inflaming tensions in Palestine and the wider region, pushing the Middle East closer to further instability and conflict.

“Pakistan reiterates its urgent call for an immediate ceasefire, an end to all acts of aggression, and the revival of a credible peace process leading to an independent and viable State of Palestine, with Al-Quds Al-Sharif as its capital, in accordance with international law and relevant UN resolutions,” Shehbaz added.

The Foreign Office also issued a separate statement to condemn the Israeli move.

“The presence and statements of senior Israeli officials, and the repugnant declaration that ‘the Temple Mount is ours,’ are a dangerous and deliberate attempt to provoke religious sentiments across the world, escalate tensions, and alter the status of Al‑Aqsa Mosque,” the statement said.

It said that Israel’s expansionist attempts were a deliberate effort to destabilize the region and sabotage any meaningful path to peace.

“These provocations risk igniting a catastrophic spiral of violence across the region.”

The world must not remain silent in the face of such systemic, illegal, inhumane, and unlawful aggression. Such actions constitute a blatant violation of international human rights and humanitarian laws, the United Nations Charter, as well as various UN and Organization of Islamic Cooperation (OIC) Resolutions.

“We urge the international community, particularly the United Nations, to take immediate and concrete steps to hold Israel accountable for its illegal actions and to protect the religious sanctity of Al‑Aqsa Mosque and the rights of the Palestinian people, in particular the right to self-determination.

“Pakistan reaffirms its unwavering support for the creation of a sovereign, independent, viable, and contiguous Palestinian State based on pre-June 1967 borders, with Al-Quds Al-Sharif as its capital.”

Pakistan has consistently raised its voice for the people of Palestine, calling for an immediate, unconditional and permanent ceasefire in Gaza.

Last month, Pakistan urged the UNSC not to remain “a bystander” amid the deepening humanitarian crisis in Gaza.

 

 

 

 

 

 

Germany should consider sanctions on Israel

According to Reuters, a senior lawmaker in German Chancellor Friedrich Merz's coalition on Monday said Berlin should consider sanctions on Israel including a partial suspension of weapons exports or the suspension of a European Union-wide political agreement.

The call by Siemtje Moeller, the deputy leader of the Social Democrats (SPD) parliamentary faction, reflects a sharpening of rhetoric from Berlin against Israel which has yet to yield any major policy changes.

Moeller, whose SPD joined a coalition with Merz's conservatives this year, wrote a letter to SPD lawmakers after returning from a trip to Israel with Foreign Minister Johann Wadephul last week.

"My assessment is that the Israeli government will move little without pressure. If such concrete improvements fail to materialize in the near future, there must be consequences," she said in the letter.

Recognition of a Palestinian state should not be "taboo", she said, adding that Israeli statements that there were no restrictions on aid to Gaza were not convincing.

At the same time, Moeller demanded the immediate and unconditional release of the hostages held by Hamas. She said Hamas must no longer play a role in a political future in Gaza. "It must be disarmed, its reign of terror must end."

Western nations have intensified efforts to exert pressure on Israel, with Britain, Canada and France signalling their readiness to recognize a Palestinian state in Israeli-occupied territory at the United Nations General Assembly this September.

Critics argue that Germany’s response remains overly cautious, shaped by an enduring sense of historical guilt for the Holocaust and reinforced by pro-Israel sentiment in influential media circles, weakening the West’s collective ability to apply meaningful pressure on Israel.

Israel's air and ground war in densely populated Gaza has since killed more than 60,000 Palestinians, according to enclave health officials.

A growing number of civilians are dying from starvation and malnutrition, Gaza health authorities say, with images of starving children shocking the world and intensifying criticism of Israel over its curbs on aid into the enclave.

Israel blames Hamas for the suffering in Gaza but, in response to a rising international outcry, it announced steps last week to let more aid reach the population, including pausing fighting for part of the day in some areas, approving air drops and announcing protected routes for aid convoys.

 

Sunday, 3 August 2025

Pakistan and Iran term terror main hurdle to prosperity

Pakistan and Iran on Sunday agreed that peace and prosperity in their border regions hinged on effectively combating terrorism, as both countries renewed their commitment to increase annual bilateral trade to US$10 billion.

The consensus was rea­ched during a bilateral meeting at the Prime Mini­ster House in Islamabad and later emphasized at a joint press conference by Prime Minister Shehbaz Sharif and Iranian Presi­dent Masoud Pezeshkian.

“The development of economic and trade ties will be achieved through peace, stability, and tranquility,” Pezeshkian said, underscoring that terrorism remains a key obstacle to mutual prosperity.

“Given the threats from terrorist groups in border areas, both sides emphasized the need to increase cooperation to ensure border security and safeguard the peace and well-being of citizens in border cities,” the Iranian president added.

The nearly 900-kilometre border between the two countries has long faced security threats from proscribed groups, such as Jaish al-Adl and the Baluchistan Liberation Army. Persistent issues, including terrorism, smuggling, and mutual accusations of harbouring militants, have periodically strained ties.

Shehbaz acknowledged that security was paramount for progress in bilateral relations. “There will be zero tolerance for all forms of terrorism. If anyone falls victim to terrorism in Iran, it is the same as someone being affected by terrorism in Pakistan,” he said.

“For peace and development in our region, and along our hundreds of kilometres-long shared border, we must cooperate against terrorism and take effective steps to eliminate the scourge of terrorism once and for all,” Shehbaz added.

While the two leaders voiced their commitment to deepening cooperation, specific operational details were reportedly discussed in President Pezeshkian’s meeting with Chief of Army Staff Field Marshal Asim Munir.

Later in the evening, Pezeshkian met senior Pakistani military leaders, including Chairman Joint Chiefs of Staff Gen Sahir Shamshad Mirza, Air Chief Marshal Zaheer Babar Sidhu, and ISI chief Lt Gen Asim Malik at the presidency before the dinner reception hosted by President Asif Ali Zardari. A naval representative was also in attendance.

The two sides reaffirmed their commitment to raising annual bilateral trade to US$10 billion — a target first set during the late Iranian president Ebrahim Raisi’s visit to Pakistan in April 2024.

“We can easily, in a short time, increase the volume of trade from the current US$3 billion to the projected goal of US$10 billion,” Pezeshkian said during the joint media conference.

Shehbaz echoed the sentiment. “We also jointly hope that the US$10 billion trade target is achieved at the earliest,” he said.

Trade has been constrained by a range of factors, including international sanctions on Iran, security concerns along the border, inadequate infrastructure, and limited economic complementarity.

Diplomatic and political fluctuations, often shaped by broader geopolitical tensions, have also affected the implementation of trade agreements.

While neither leader offered a clear roadmap to resolve these issues, both underscored a shared political will to continue engaging on them.

“Our delegations will take these discussions forward very soon,” Shehbaz said.

Earlier, at the bilateral talks, he had emphasized the need to convene the long-delayed 22nd meeting of the Pakistan-Iran Joint Economic Commission at the earliest. The 21st meeting of the Commission was held in 2022.

Proposals discussed during the talks included facilitating barter trade, increasing export quotas for rice, fruits, and meat, operationalizing cross-border markets, and removing trade barriers.

Border market development remains a key focus. Although the two countries agreed several years ago to establish six such markets, only three have become operational so far.

“The development of transit routes – railway routes and sea routes – the expansion and equipping of border markets, the facilitation of trade, and the establishment of joint free economic zones are critical needs in the relationship between the two countries, and we had constructive discussions on these issues,” Pezeshkian said.

Pakistan and Iran signed and exchanged 12 agreements and memorandums of understanding (MoUs) to enhance cooperation across a broad spectrum of areas. The documents covered trade, transit, science and technology, tourism, agriculture, cultural exchange, maritime safety, and judicial cooperation.

The agreements include collaboration on plant quarantine, joint use of the Mirjaveh-Taftan border crossing, ICT, tourism cooperation for 2025-27, and a joint ministerial statement on finalising a Free Trade Agreement.

“We reached agreements in political, economic, commercial, and cultural fields, and signed documents to facilitate and promote cooperation in commerce, culture, tourism, transportation, and scientific and educational exchanges,” Pezeshkian said.