ISLAMABAD: Pakistan’s Finance Minister Miftah Ismail on Tuesday said Russia had not offered cheaper oil to Pakistan, contrary to what was claimed by former prime minister Imran Khan. 

Khan on May 26 criticized the government of PM Shehbaz Sharif for not pursuing his administration’s “deal” for the procurement of oil from Russia on 30 percent cheaper rates. His remarks came in response to Rs30 hike in petroleum prices. 

The former prime minister also gave the example of India, a strategic ally of the United States, saying New Delhi had “managed to reduce fuel prices by PKR25 per liter by buying cheaper oil from Russia.” 

“The previous government wrote a letter to Russia federation that letter was never responded to. Russia has also not offered us any oil and it is now under sanction so it very difficult for me to imagine buying Russian oil,” FM Ismail told CNN’s Becky Anderson in an interview. 

“If Russia were to offer us oil at cheaper rate and there were no sanctions on Pakistan to buy Russian oil sure, we would consider that but at this point I think that it would be not possible for Pakistani banks to open LCs (Letters of Credit) or to arrange to buy Russian oil and nor for that matter has the Russian federation offered to sell us any oil.” 

The minister, however, said Pakistan was willing to buy wheat either from Russia and Ukraine. “We have actually asked, either Ukraine or Russia, whichever country sells us wheat we are happy to buy wheat from them,” he said. 

Cash-strapped Pakistan increased the prices of petroleum products to help revive the $6 billion International Monetary Fund (IMF) loan program it secured in 2019. 

The IMF insisted that Pakistan withdraw around $2 billion subsidies on fuel and electricity prices, which were announced by the former Khan government for the months of April, May and June. The South Asian nation is facing a worsening balance-of-payment crisis due to declining foreign exchange reserves, linked in part with its oil imports. 

The revival of the IMF program will see the release of around $1 billion to Pakistan and help unlock funding from other multilateral donors.