Pakistan seeks recommendations from major local refineries on oil imports from Russia

A fuel pump is pictured at a Pakistan State Oil petrol station in Rawalpindi, Pakistan October 6, 2017. (REUTERS/FILE)
Short Url
Updated 29 June 2022
Follow

Pakistan seeks recommendations from major local refineries on oil imports from Russia

  • Former Prime Minister Imran Khan has said Russia was willing to offer oil at cheaper rates to Pakistan
  • Current government says willing to buy oil from Russia if Islamabad didn’t face international sanctions 

ISLAMABAD: Pakistan’s energy ministry has sought recommendations from industrial experts and major local refineries on importing crude oil from Russia, as the country faces a growing energy crisis.

Former Prime Minister Imran Khan, who arrived in Russia in February the day it launched a full-scale invasion of Ukraine, has said Moscow was willing to offer oil at cheaper rates to Pakistan. Pakistan’s Finance Minister Miftah Ismail, who is in the new cabinet of PM Shehbaz Sharif, has rubbished Khan’s claims and said Islamabad would be willing to buy oil at cheaper rates from Russia only if Moscow made the offer and Islamabad didn’t have to face sanctions on the deal. 

In a letter to the Pak-Arab Refinery, National Refinery, Pakistan Refinery and Byco Petroleum, the energy ministry asked for recommendations on the import of crude oil from Russia.

“I am directed to refer to the subject cited about [Import of Crude Oil from Russian] and to request to furnish a detailed analysis with regard to option of crude oil along with the recommendations,” Thair Hussain, Deputy Director at the Energy Ministry said.

The ministry sought recommendations on the technical sustainability of crude grades in view of each refinery’s configurations and yield.

“Quantity and grade of the subject crude to be required by the refinery,” the letter said, asking the oil companies to submit the recommendation on “transportation/freight analysis for imports from Russia in comparison with normal imports from the Middle East based on cost and benefit analysis.”

It also asked for recommendations on “payment methodology” in case of crude oil import and “existing commitment to upliftment from the Arab Gulf region with respect to term contracts.”

Pakistan’s monthly fuel oil imports are set to hit a four-year high in June, Refinitiv data shows, as the country struggles to buy liquefied natural gas (LNG) for power generation amid a heatwave that is driving demand.


Pakistan, Qatar discuss Afghanistan situation, urge dialogue for regional stability

Updated 7 sec ago
Follow

Pakistan, Qatar discuss Afghanistan situation, urge dialogue for regional stability

  • The development comes amid renewed Islamabad-Kabul tensions after last week’s Pakistani airstrikes inside Afghanistan
  • Qatar, along with other states, helped mediate a ceasefire between the neighbors following weeklong skirmishes in Oct.

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif and Qatar’s Deputy PM Sheikh Saoud Al-Thani on Tuesday discussed the situation in Afghanistan and called for dialogue to promote regional stability during high-level talks held in Doha, Sharif’s office said.

The development comes amid renewed tensions between Pakistan and Afghanistan after Islamabad conducted airstrikes on what it said were Tehreek-e-Taliban Pakistan (TTP) targets in Afghanistan last week. Kabul said the strikes killed civilians and vowed to respond to the violation of its sovereignty.

This is the second time in less than six months that Pakistan has conducted airstrikes in Afghanistan. The last strikes triggered heavy, weeklong clashes between the neighbors along their border before Qatar and Turkiye mediated a ceasefire between them in Oct. last year.

During their meeting in Doha, PM Sharif and Qatari Deputy PM Sheikh Saoud Al-Thani, who is also the state minister for defense affairs, discussed defense and security relations between the two countries, according to Sharif’s office.

“Regional developments were also discussed, in particular the situation in Iran and Afghanistan,” Sharif’s office said in a statement. “Both sides emphasized the importance of dialogue, de-escalation and collective efforts to promote peace and stability in the region.”

Sheikh Saoud appreciated the professionalism and expertise of the Pakistani armed forces and conveyed Qatar’s interest in deepening defense partnership between the two countries, according to the statement.

The Pakistan premier expressed satisfaction over the ongoing collaboration and underscored Islamabad’s commitment to further expanding defense collaboration.

Separately, Sharif held meetings with Qatar’s State Minister for Trade Dr. Ahmed bin Mohammed Al-Sayed and a delegation of the Qatar Businessmen Association (QBA).

During his meeting with the Qatari trade minister, the two sides reviewed bilateral trade and economic cooperation and expressed satisfaction over the growing momentum in Pakistan–Qatar relations.

“The Prime Minister emphasized the importance of enhancing bilateral trade volumes and diversifying Pakistan’s exports to Qatar, particularly in agricultural products, food items and value-added goods,” the Pakistani information ministry said.

Pakistan has been seeking closer economic engagement with Gulf partners amid its broader push to stabilize the economy and attract investment, while maintaining security and defense cooperation with key regional states.

Sharif highlighted Pakistan’s investment-friendly reforms and the role of the Special Investment Facilitation Council (SIFC) in facilitating foreign investment, according to the Pakistani information ministry.

Dr. Al-Sayed, who is also the chairman of Pak-Qatar joint business taskforce, reiterated Qatar’s interest in expanding economic cooperation and strengthening private-sector and business linkages between the two countries.

“The two sides also agreed to convene a meeting of the task force comprising relevant officials of both countries, within the month of Ramadan, to discuss concrete investment proposals for Qatari investment in Pakistan,” it added.

In his meeting with QBA delegates, Sharif highlighted Pakistan’s improving macroeconomic indicators and invited QBA members to explore opportunities in infrastructure, logistics, energy, agriculture, technology and export-oriented manufacturing.

Sharif is also scheduled to meet Qatar’s Emir Sheikh Tamim bin Hamad Al Thani and Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani in Doha today, Tuesday, to discuss ways to further strengthen bilateral relations, Sharif’s office said.

“Discussions will take place on further strengthening bilateral relations,” it added.