FM Bhutto-Zardari arrives in Moscow as Pakistan scrambles to secure Russian oil imports

Russia's Foreign Minister Sergei Lavrov and Pakistan's Foreign Minister Bilawal Bhutto Zardari enter a hall during their meeting in Moscow, Russia, on January 30, 2023. (REUTERS)
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Updated 30 January 2023
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FM Bhutto-Zardari arrives in Moscow as Pakistan scrambles to secure Russian oil imports

  • Russia last week conceptually agreed to provide cheap crude oil to cash-strapped Pakistan on easy payment terms
  • Bhutto-Zardari will meet his Russian counterpart and deliberate upon the ‘entire spectrum’ of bilateral relations

ISLAMABAD: Foreign Minister Bilawal Bhutto-Zardari arrived in Moscow late Sunday amid efforts to finalize an oil deal between cash-strapped Pakistan and Russia, the Pakistani foreign office said. 

The visit comes after a Russian delegation came to Pakistan to attend the 8th Pakistan-Russia Inter-Governmental Commission (IGC) meetings in Islamabad this month. 

The Russian delegation signed multiple memoranda of understanding with Pakistan in different sectors and also conceptually agreed to provide cheap crude oil to the cash-strapped country, which has been struggling for months to meet its energy needs due to a severe forex crunch. 

In view of Pakistan’s deteriorating economic conditions and its forex reserves declining to a staggering $3.6 billion, Russia also said this month it would allow Pakistan to pay for the energy imports in currencies of friendly countries. 

“Foreign Minister Bilawal Bhutto-Zardari has arrived in Moscow on an official visit. The FM was received by senior officials of the Russian Foreign Ministry, Pakistan’s Ambassador to Russia, Mr. Shafqat Ali Khan and officials of the Embassy,” Mumtaz Zahra Baloch, a Pakistani foreign office spokesperson, said on Twitter. 

Over the decades, Pakistan-Russia ties have seen many ups and downs, mainly due to Islamabad’s alliance with Washington. But in recent years, relations between the two countries have warmed up as a countermeasure to proximity between India and the United States (US) on world issues. 

“The foreign minister will hold official talks with his Russian counterpart where the two sides would deliberate upon the entire spectrum of bilateral relations and exchange views on regional and international issues of mutual interest,” the Pakistani foreign office said in an earlier statement. 

On Friday, Reuters reported independent Russian oil refiner Forteinvest had clinched a deal that will see 1,000 tons of Russian gasoline sent to Pakistan by land for the first time. 

The development came days after US State Department Spokesperson Ned Price said “now is not the time” to bolster economic ties with Russia, as the West continues to find ways to curtail Moscow’s finances due to its invasion of Ukraine. 

The Pakistani government, however, reiterated that the South Asian country would go ahead with the oil deal with Russia, adding that all deals will be finalized by March and oil will arrive in Pakistan by the end of April. 
 


Kazakh president meets Pakistan PM to discuss bilateral trade, regional connectivity

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Kazakh president meets Pakistan PM to discuss bilateral trade, regional connectivity

  • Kazakhstan seeks access to Arabian Sea ports as Pakistan pushes role as regional transit hub
  • Commerce ministers discuss connectivity challenges as Pakistan-Kazakhstan trade push grows

KARACHI: Kazakhstan President Kassym-Jomart Tokayev arrived at Prime Minister Shehbaz Sharif’s official residence in Islamabad on Wednesday for talks with Pakistan’s top political leadership on bilateral trade, cooperation and regional connectivity, with both sides expected to sign several memoranda of understanding (MoUs).

Tokayev arrived in Pakistan a day earlier on a two-day official visit as landlocked Kazakhstan seeks access to maritime trade routes through Pakistan’s southern ports on the Arabian Sea. Islamabad, meanwhile, has been positioning itself as a regional transit hub, with an emphasis on improving physical connectivity with Central Asian states.

Pakistan’s Deputy Prime Minister (DPM) and Foreign Minister (FM) Ishaq Dar called on the Kazakh president earlier in the day to welcome him to the country.

“Welcoming him to Pakistan, DPM/FM extended warm greetings from the President, Prime Minister, Government and people of Pakistan,” the foreign office said in a social media post.

It said Dar underscored Pakistan’s appreciation for the growing momentum of high-level political exchanges and reaffirmed a shared commitment to expand bilateral cooperation across political, economic and people-to-people domains, while working together for durable peace, stability and development in the region.

According to the Kazakh government, bilateral trade between the two countries stood at $53.7 million in 2024. Pakistan’s main exports to Kazakhstan include citrus fruits, pharmaceutical products, garments, soap and sports equipment, while imports largely comprise onions and garlic, dried legumes, oats, buckwheat, seeds and fruits.

Pakistan’s foreign office said a day earlier that Tokayev’s visit would offer an important opportunity to explore new avenues for cooperation, with MoUs expected in areas of mutual interest.

Federal Minister for Commerce Jam Kamal Khan separately held talks on Wednesday with Kazakhstan’s Minister of Trade and Integration Arman Shaqqaliev to review bilateral trade and connectivity.

“The meeting focused extensively on addressing connectivity challenges between Pakistan and Central Asia and identifying practical solutions to unlock the full trade potential between the two countries,” the commerce ministry said.

“Both sides agreed that improved rail, road and multimodal connectivity is fundamental to strengthening Pakistan–Kazakhstan trade and enabling sustainable, long-term economic engagement,” it added.

Shaqqaliev highlighted the strategic importance of major infrastructure projects, particularly rail and road corridors, saying such initiatives could generate trade and investment flows of about $5 billion, create jobs and strengthen regional supply chains.

Khan said Pakistan was keen to enhance direct connectivity with Central Asia through Turkmenistan and Afghanistan, while acknowledging regional and geopolitical challenges.

“Improved transit routes would not only benefit Pakistan and Kazakhstan but also open broader opportunities for regional and global trade, including access to African and ASEAN markets through Pakistan’s ports,” he was quoted as saying.

The two sides discussed cooperation in sectors including agriculture and food security, pharmaceuticals, textiles, sports goods, leather, mining, energy and infrastructure development.

Kazakhstan expressed interest in joint ventures in food processing, agriculture value chains and pharmaceuticals, while Pakistan invited Kazakh investment in mining, minerals and agri-based industries under its investment facilitation framework.

Both ministers also stressed the need for structured business-to-business engagement, agreeing that trade promotion bodies should focus on linking firms, sharing market intelligence and facilitating matchmaking without adding regulatory hurdles.

“They reaffirmed their shared commitment to transforming Pakistan–Kazakhstan economic relations from potential to performance, with a strong focus on connectivity, investment-led growth and regional integration,” the commerce ministry said, adding that sustained coordination and private-sector engagement could significantly boost trade and investment in coming years.