Working with Pakistan to shape ‘multipolar world order,’ Russian foreign minister says

In this photograph, taken on January 30, 2023, Russian Foreign Minister Sergei Lavrov (R) and his Pakistani counterpart Bilawal Bhutto Zardari shake hands as they hold a joint press conference following their talks in Moscow. (AFP/File)
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Updated 13 June 2023
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Working with Pakistan to shape ‘multipolar world order,’ Russian foreign minister says

  • First cargo of discounted Russian crude oil under deal between Islamabad and Moscow arrived in Karachi on Sunday
  • Discounted crude offers relief to Pakistan, which is facing a payments crisis and is at risk of defaulting on its debt

ISLAMABAD: Russian Foreign Minister Sergey Lavrov has said Moscow was interested in “expanding cooperation” with Pakistan and wanted to work with Islamabad to shape a “more just and democratic multipolar world order.”

Lavrov made the remarks in a video message to Pakistan on Monday on the occasion of the 75th anniversary of diplomatic relations between the two countries and days after the first cargo of discounted Russian crude oil arranged under a deal struck between Islamabad and Moscow arrived in Karachi.

“Our relations are advanced and based on trust,” Lavrov said. “They are founded on the concurrence or proximity of approaches to the key issues of the international agenda. Together with our Pakistani partners, we stand for shaping a more just and democratic multipolar world order.”

“There have been different periods in our relations over the past three quarters of a century. However, Russia has always been interested in expanding cooperation with Pakistan, and under no circumstances has abandoned its commitments.”

Lavrov spoke about the participation of Soviet specialists in the construction of the largest steel mill in Karachi, now called Pakistan Steel Mills, in the 1980s, despite the conflict raging in Afghanistan at the time, as well as the Guddu Thermal Power Plant, then the largest in Pakistan, which was also commissioned then.

The Russian foreign minister said the two countries had also in recent years succeeded in making significant progress in bilateral trade.

“Russia has become a major supplier of wheat to Pakistan, with shipments exceeding one million tons last year,” Lavrov said.

“Negotiations on launching a cooperation project in the oil sector are at their final stage. Together with our Pakistani partners, we stand for shaping a more just and democratic multipolar world order. We respect the cultural and civilizational diversity of peoples and their right to determine the avenues of their political, social and economic development themselves.”

Lavrov said Moscow considered Pakistan a key international partner in joint efforts to combat common security challenges and threats, including transborder crime and terrorism.

On Sunday, Pakistan celebrated the first Russian discounted crude oil cargo arriving in Karachi, which Prime Minister Shehbaz Sharif described as the “beginning of a new relationship between Pakistan and Russian Federation.”




This handout photograph, taken and released by Karachi Port Trust, shows a Russian ship, Pure Point, anchored at the OP2 in Karachi on June 11, 2023, carrying 45,000 metric tons of crude oil. (Photo courtesy: KPT)

The discounted crude offers relief to Pakistan, which is facing a payments crisis and is at risk of defaulting on its debt.

Pakistan's purchase also gives Moscow a new outlet to add to growing sales to India and China, as it redirects oil from Western markets because of the Ukraine conflict.

Despite being a long-standing Western ally and the arch-rival of neighbouring India, which historically is closer to Moscow, analysts say the crude deal presents a new avenue for Pakistan at a time when its financing needs are great.

Islamabad earlier this month also outlined a process to open barter trade with Russia, Afghanistan and Iran, another sign of the South Asian economy seeking avenues to buy and sell commodities without trading in dollars, which analysts say could be a shift from West to East.


Pakistan offloads wheat stocks, boosts provincial supply to stabilize prices

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Pakistan offloads wheat stocks, boosts provincial supply to stabilize prices

  • ECC approves sale of 500,000 tons of wheat, allocates 300,000 tons to Punjab
  • Cabinet body also clears utility arrears and approves vaccine and fertilizer funding

KARACHI: Pakistan’s top economic decision-making body on Wednesday approved the disposal of surplus government wheat stocks and a major inter-provincial allocation to stabilize domestic flour prices, as Islamabad seeks to manage food security risks while containing fiscal pressures.

The decisions come as Pakistan grapples with food inflation sensitivity, climate-related supply disruptions and the fiscal burden of carrying large public stocks. Wheat, the country’s staple food, is politically and economically critical because flour prices directly affect household inflation and living costs, and past volatility has triggered public unrest and costly emergency imports.

On Wednesday, the Economic Coordination Committee (ECC) of the Cabinet authorized the sale of 500,000 metric tons of wheat held by the Pakistan Agricultural Storage and Services Corporation (PASSCO), the federal grain procurement agency, through competitive bidding. It also approved the release of 300,000 metric tons to the Punjab government to ensure uninterrupted supplies to flour mills, according to an official statement issued by the Finance Division.

“The disposal of 500,000 metric tons of PASSCO wheat stock through competitive bidding aims at managing surplus stocks, reducing carrying and storage costs, and ensuring price stability in the domestic wheat market while safeguarding food security considerations,” the Finance Division said in a statement following the ECC meeting.

In a related move, the committee approved the provision of PASSCO wheat to Punjab, the country’s most populous province and a key driver of national wheat consumption, to help maintain adequate supplies for flour mills and prevent supply chain disruptions, the statement said.

Beyond food security, the ECC approved a technical supplementary grant - an off-budget allocation used to meet urgent funding needs - of Rs 10.98 billion ($39 million) to clear long-standing liabilities owed by the Pakistan Post Office Department to utility companies, part of broader efforts to address inter-government arrears that have strained public sector finances.

In the health sector, the committee authorized Rs 29.66 billion ($106 million) for the Federal Directorate of Immunization to ensure uninterrupted procurement of vaccines and syringes under the Expanded Program on Immunization, a move aimed at sustaining routine immunization coverage and preventing outbreaks of vaccine-preventable diseases.

The ECC also approved a Rs 23.42 billion ($84 million) subsidy package for imported urea, to be shared equally between the federal and provincial governments, as authorities seek to cushion farmers from rising fertilizer costs and limit spillover effects on food prices.