Pakistan pays for Russian grain in UAE dirhams

By Rhod Mackenzie

According to analysis of data from the Pakistani government, Pakistan received a record 1.4 million tons of grain from Russia in 2023. In addition, the November imports were paid for the first time in UAE dirhams instead of US dollars.

At the end of autumn, Pakistan imported 377.2 thousand tons of wheat from Russia for approximately 10.6 billion rubles. Almost 82% of this amount was paid in dirhams, marking the first instance of mutual grain trade between the two countries.

In 2023, Russia supplied Pakistan with a record volume of grain, almost 1.4 million tons, compared to 294 thousand tons the previous year. According to available data from the two countries, the previous record year for supplies was 2020, when Pakistani companies purchased 1.2 million tons of Russian grain.

In the process of dedollarization of trade between the two countries, grain has also become a commodity. For instance, in September, the first supply of oil was made for Chinese yuan, and throughout this year, coal has been sold for dirhams. Additionally, trade in food, chemicals, and fertilizers occurs in these currencies.