The Russian Energy Minister is arriving in Pakistan next month to finalize negotiations to import crude oil from Russia at discounted rates, according to Minister of State for Petroleum Division Musadik Malik. This comes as Pakistan looks to diversify its sources of imported oil and reduce its reliance on the Middle East.
Pakistan currently imports around four million barrels of oil per day, with the majority coming from Saudi Arabia and the United Arab Emirates. However, both of these countries have recently raised prices, putting a strain on Pakistan’s already- precarious finances. In contrast, Russia has been offering discounts on its oil exports, making it an attractive option for Pakistan.
Speaking to the media in Islamabad on Friday, Musadik Malik said that a Pakistani delegation recently visited Moscow and held fruitful discussions to import crude oil and finished petroleum products from Russia after consulting with three Pakistani refineries. He claimed that two of Russia’s eight varieties of crude oils, which can also be processed at Pakistani refineries, have been provided.
An interview with Musadik Malik revealed the following:
- Musadik Malik responded to a query on Foreign Minister Bilawal Bhutto Zardari’s claim that Pakistan is not attempting to import oil from Russia and is not currently doing so. He added that while we are not now purchasing oil from Russia, we are negotiating with the Russian government to purchase petroleum goods from them. On the other hand, he stated that a thorough technical evaluation of our discussions with the Russian government
- Regarding the availability of gas in the country, the minister of state said the coalition is making every effort to provide consumers with additional gas now and in the coming months. of other LPG and has LPG stores set up in various parts of the country where line gas is not available. He said two more shipments would be imported from Qatar in the next two months.
- Musadik Malik also revealed that the government is drafting a new energy policy to boost economic growth, accelerate development, create job opportunities, and curb inflation in the country.
- Oil Minister Musadiq Malik said Russia would supply Pakistan with crude oil, gasoline, and diesel at the lowest possible prices.
The Russian Energy Minister’s visit next month will therefore be crucial in determining whether or not Pakistan can secure a good deal on importing oil from Russia. If successful, this could help reduce Pakistan’s trade deficit and ease some of the financial pressure it is currently facing.