Pakistan, Russia to study feasibility of gas supply from Middle East

Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Federal Minister for Petroleum Division, Ghulam Sarwar Khan, during a meeting in Islamabad on Wednesday. (Photo courtesy: Ministry of Petroleum)
Updated 06 February 2019
Follow

Pakistan, Russia to study feasibility of gas supply from Middle East

  • Project aims to transport gas from Moscow to Islamabad through Gazprom's sources
  • Hopes to extend it further to South Asian countries as well

ISLAMABAD: In addition to taking stock of the progress made in the exploration of oil and gas in the country, representatives from both Islamabad and Moscow also discussed ways to supply gas from the Middle East to Pakistan, the Ministry of Petroleum said on Wednesday.

They aim to do this by tapping into Russian energy giant, Gazprom's sources in the Middle East and channeling the same to Pakistan.

Mobin Saulat, Managing Director, Inter State Gas Systems, Pakistan, and Vitaly. A. Markelov, Deputy Chairman of the Management Committee and Member of the Board of Directors of Gazprom, signed an inter-corporate agreement in Islamabad to undertake a feasibility study on gas supplies from the Middle East.

"The document, which serves as a follow-up to the memorandum inked by the Ministry of Energy of the Russian Federation and the Ministry of Energy of the Islamic Republic of Pakistan in September 2018, provides for a joint feasibility study regarding gas supplies from the Middle East to South Asian countries," Gazprom said in a statement issued in Moscow.

Federal Minister for Petroleum Division, Ghulam Sarwar Khan lauded the expanding trajectory of bilateral relations between Russia and Pakistan and appreciated Gazprom’s interest in the offshore gas pipeline project and termed it "a manifestation of multifaceted cooperation between both the countries."

"This project envisages transporting of gas molecules from Gazprom’s sources in the Middle East onwards to Pakistan with a possibility in extending it further to South Asian countries," a statement issued by Pakistan's Ministry of Petroleum said.

Plans for the pipeline is part of an integrated approach which includes other ancillary projects such as underground gas storage, desalination, and power projects.

"Pakistan will import some 500 million to 1 billion cubic feet of gas from Russia daily, which would be transported via sea link, the agreement stipulates. The pipeline construction is expected to be completed in three to four years," the statement added.

In September 2018, Pakistan and Russia had signed a Memorandum of Understanding (MoU) in Moscow for the construction of the marine gas pipeline at the cost of $10 billion.

A feasibility study of the project will be conducted by Gazprom and the project will be jointly handled by Pakistan’s state-owned Inter State Gas Systems (ISGS) along with Gazprom.

The ISGS is currently also engaged with mega gas pipeline schemes such as the $10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project which aims to bring natural gas from the Gylkynish and adjacent gas fields in Turkmenistan to this region.


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

Updated 10 January 2026
Follow

IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.