Pakistan could save between $280 million and $340 million annually on crude oil imports if international sanctions on Iran are lifted, according to a research report published this week by Karachi-based Topline Securities.
Potential Savings from Iranian Crude
The report, released on Thursday, assumes that Iran would offer competitive pricing to regain market share following the easing of sanctions. It estimates that sourcing crude oil from Iran could generate import cost savings of up to $170-340 million for Pakistan, based on the assumption that Pakistan sources 10-20% of its total petroleum requirement with a discount of 10%, which also includes savings on freight costs.
Pakistan imported nearly $17 billion worth of petroleum products and fuels in 2025. The country imported Iranian crude at a discounted realized price ranging between 13-17% on average from 2009 till 2012, before several Iranian banks were disconnected from SWIFT after the European Union sanctions on its oil and petrochemicals, according to the report. Currently, Iranian Light and Iranian Heavy crude grades are still priced at 2-3% discounts.
Bilateral Trade Plans and Sanctions Relief
Pakistan and Iran plan to raise their bilateral trade to $10 billion from the existing around $3 billion, with both sides last year signing 12 agreements and memorandums of understanding for cooperation in diverse fields. However, progress on Pakistan’s economic projects with Iran will hinge on the pace at which sanctions against Tehran are lifted, following the United States-Iran peace deal.
Pakistani Foreign Office spokesperson Tahir Andrabi told reporters on Wednesday that the progress on “economic projects and opening up of Iran for economic and trade relations across the world will take place simultaneously with the relief of sanctions.” He added, “Till such time that the sanctions are relieved, the progress on these projects will hinge on the pace of the relief of sanctions. It is important to match the two.”
Context of US-Iran Peace Deal
Andrabi’s comments came a day after Iranian President Masoud Pezeshkian’s visit to Pakistan. The potential lifting of sanctions is tied to the US-Iran peace deal, which could open up economic opportunities for both Pakistan and Iran.
