Pakistani, Russian foreign ministers meet on SCO sidelines, vow to deepen energy cooperation

Russian Foreign Minister Sergey Lavrov, right, and Pakistan Foreign Minister Bilawal Bhutto Zardari talk during their meeting on the sideline of the Foreign ministers of the Shanghai Cooperation Organization meeting in Goa, India on May 4, 2023. (Russian Foreign Ministry Press Service via AP)
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Updated 04 May 2023
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Pakistani, Russian foreign ministers meet on SCO sidelines, vow to deepen energy cooperation

  • SCO foreign ministers gathered in Goa on Thursday to discuss regional security matters
  • Last month Pakistan said it had placed its first order for discounted Russian crude oil

ISLAMABAD: Pakistani foreign minister Bilawal Bhutto-Zardari on Thursday met his Russian counterpart Sergey Lavrov on the sidelines of the Shanghai Cooperation Organization (SCO) Council of Foreign Ministers meeting in India, vowing to deepen cooperation in energy and food security and enhance people to people contact. 

SCO foreign ministers gathered in Goa on Thursday to discuss regional security matters, including adding Iran and Belarus to a union of nations seen as a counterweight to Western influence in Eurasia.

The SCO is a political and security union of countries spanning much of Eurasia, including China, India and Russia. Formed in 2001 by Russia, China and ex-Soviet states in Central Asia, the body has been expanded to include India and Pakistan.

"They discussed bilateral, regional & int’l matters of mutual interest," the Pakistani foreign office said about Lavrov's meeting with Bhutto-Zardari. 

"Assured to work closely for further deepening cooperation in food security, energy & people to people contacts."

Last month Pakistan said it had placed its first order for discounted Russian crude oil under a deal struck between Islamabad and Moscow, with one cargo to dock at the port of Karachi in May. 

Pakistan's purchase gives Russia a new outlet, adding to Moscow's growing sales to India and China, as it redirects oil from western markets because of the Ukraine war.

As a long-standing Western ally and the arch-rival of neighboring India, which historically is closer to Moscow, analysts say the crude deal would have been difficult for Pakistan to accept, but its financing needs are great.

Discounted crude offers respite as Pakistan faces an acute balance of payments crisis, risking a default on its debt obligations. The foreign exchange reserves held by the central bank are scarcely enough to cover four weeks of controlled imports.

Energy imports make up the majority of the country's external payments.

PAKISTAN-INDIA TIES

Bhutto-Zardari is the first senior Pakistani leader to visit India in nine years amid longstanding tensions between the large, nuclear-armed South Asian rivals.

However, there are no plans for Bhutto-Zardari to meet Indian Foreign Minister Subrahmanyam Jaishankar separately and his visit was not expected to lead to a breakthrough in strained Indian-Pakistani relations.

"During my visit, which is focused exclusively on the SCO, I look forward to constructive discussions with my counterparts from friendly countries," Bhutto-Zardari tweeted before arriving in Goa.

Relations between India and Pakistan have been fraught for decades and they have fought three wars, two of them over the Muslim-majority Himalayan region of Kashmir, which they both claim in full but rule in part.


Pakistan says repaid over $13.06 billion domestic debt early in last 14 months

Updated 29 January 2026
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Pakistan says repaid over $13.06 billion domestic debt early in last 14 months

  • Finance adviser says repayment shows “decisive shift” toward fiscal discipline, responsible economic management
  • Says Pakistan’s total public debt has declined from over $286.6 billion in June 2025 to $284.7 billion in November 2025

KARACHI: Pakistan has repaid Rs3,650 billion [$13.06 billion] in domestic debt before time during the last 14 months, Adviser to the Finance Minister Khurram Schehzad said on Thursday, adding that the achievement reflected a shift in the country’s approach toward fiscal discipline. 

Schehzad said Pakistan has been repaying its debt before maturity, owed to the market as well as the State Bank of Pakistan (SBP), since December 2024. He said the government had repaid the central bank Rs300 billion [$1.08 billion] in its latest repayment on Thursday. 

“This landmark achievement reflects a decisive shift toward fiscal discipline, credibility, and responsible economic management,” Schehzad wrote on social media platform X. 

Giving a breakdown of what he said was Pakistan’s “early debt retirement journey,” the finance official said Pakistan retired Rs1,000 billion [$3.576 billion] in December 2024, Rs500 billion [$1.78 billion] in June 2025, Rs1,160 billion [$4.150 billion] in August 2025, Rs200 billion [$715 million] in October 2025, Rs494 billion [$1.76 billion] in December 2025 and $1.08 billion in January 2026. 

He said with the latest debt repaid today, the July to January period of fiscal year 2026 alone recorded Rs2,150 billion [$7.69 billion] in early retirement, which was 44 percent higher than the debt retired in FY25.

He said of the total early repayments, the government has repaid 65 percent of the central bank’s debt, 30 percent of the treasury bills debt and five percent of the Pakistan Investment Bonds (PIBs) debt. 

The official said Pakistan’s total public debt has declined from over Rs 80.5 trillion [$286.6 billion] in June 2025 to Rs80 trillion [$284.7 billion] in November 2025. 

“Crucially, Pakistan’s debt-to-GDP ratio, around 74 percent in FY22, has declined to around 70 percent, reflecting a broader strengthening of fiscal fundamentals alongside disciplined debt management,” Schehzad wrote. 

Pakistan’s government has said the country’s fragile economy is on an upward trajectory. The South Asian country has been trying to navigate a tricky path to economic recovery under a $7 billion loan from the International Monetary Fund.