KARACHI: The Pakistani government is scheduled to discuss a long-term program for the import of discounted crude oil from Russia with the administration in Moscow next week, officials confirmed on Friday, as the South Asian state seeks to diversify its energy supplies at cheaper rates.
A Pakistani delegation, headed by the interim energy minister, Muhammad Ali, will attend the Russian Energy Week 2023 on October 11-13 at the Manege Central Exhibition Hall in the Russian capital.
Pakistan has already started imported crude oil and liquefied natural gas (LNG) from Russia.
“The Pakistani delegation will be led by the energy minister along with the secretary petroleum to participate in energy week and exhibition,” Shahbaz Tahir Nadeem, the petroleum division spokesperson, told Arab News.
“Talks with Russia for a long-term deal [related to the oil import] are already going on and that may be discussed during the upcoming visit,” he added prudently without divulging further details.
Another petroleum division official, however, said the delegation would hold talks with Russian officials over the subject on the sidelines of the event.
The official, who declined to be named, informed the Pakistani delegation would also discuss LNG import options and the Pakistan Stream Gas Pipeline (PSGP), formerly known the North-South gas pipeline, during the meeting with the Russians.
The PSGP is a project jointly implemented by the two countries in Pakistan.
The petroleum division official informed the paperwork was being finalized by the participants with an option of asking Russians to fix the supply of discounted crude oil at $60 per barrel under the deal.
The official said both sides would also consider the progress on setting up Special Purpose Vehicle (SPV), a legal entity, agreed between them but which has not been formed yet. He added the SPV’s absence was also causing delay in the long-term deal materialization.
The collaboration between Islamabad and Moscow in the energy sector stems from a government-to-government (G2G) agreement signed earlier this year. This move by the South Asian nation is aimed at expanding its sources of energy imports while securing cost-effective options.
Under the G2G deal Pakistan has already imported 100,000 ton of crude oil in June this year which prompted then-prime minister Shehbaz Sharif to describe it as a “transformative day” for his economically struggling country.
The crude oil import was followed by a delivery of 100,000 metric tons of liquefied petroleum gas (LPG) to Pakistan by Moscow through Iran late last month.
This week Cnergyico oil refinery announced to have imported the first shipment of Russian crude oil consisting 100,000 metric ton, under private arrangement.
Pakistan plans to import 20 percent of its total oil requirement from Russia under discounted rates, according to the former energy minister, Musadik Malik, who made the announcement in May this year.
Pakistan to discuss long-term deal for discounted crude oil import from Russia next week
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Pakistan to discuss long-term deal for discounted crude oil import from Russia next week
- A senior official says Pakistan wants to explore the option of securing Russian oil supply at the fixed price of $60
- The discussions over bilateral energy sector cooperation will be held on the sidelines of an energy event in Moscow
Pakistani, Bangladeshi officials discuss trade, investment and aviation as ties thaw
- Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war
- Ties between Pakistan, Bangladesh have warmed up since last year and both nations have resumed sea trade
ISLAMABAD: Pakistan's High Commissioner to Bangladesh Imran Haider on Sunday met Chief Adviser Muhammad Yunus in Dhaka, the latter's office said on, with the two figures discussing trade, investment and aviation.
Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.
Ties between Pakistan and Bangladesh have warmed up since former prime minister Sheikh Hasina’s ouster as a result of a student-led uprising in August 2024. Relations remain frosty between Dhaka and New Delhi over India’s decision to grant asylum to Hasina.
Pakistan has attempted to forge closer ties with Bangladesh in recent months and both South Asian nations last year began sea trade, followed by efforts to expand government-to-government commerce.
"During the meeting, both sides discussed ways to expand cooperation in trade, investment, and aviation as well as scaling up cultural, educational and medical exchanges to further strengthen bilateral relations between the two South Asian nations," Yunus's office said in a statement on X.
In 2023-24 Pakistan exported goods worth $661 million to Bangladesh, while its imports were only $57 million, according to the Trade Development Authority of Pakistan. In Aug. this year, the Pakistani and Bangladeshi commerce ministries signed a memorandum of understanding to establish a Joint Working Group on Trade, aiming to raise their bilateral trade volume to $1 billion in the financial year that began in July.
The Pakistani high commissioner noted that bilateral trade has recorded a 20 percent growth compared to last year, with business communities from both countries actively exploring new investment opportunities, according to the statement.
He highlighted a significant increase in cultural exchanges, adding that Bangladeshi students have shown strong interest in higher education opportunities in Pakistan, particularly in medical sciences, nanotechnology, and artificial intelligence. Haider also said that Dhaka-Karachi direct flights are expected to start in January.
"Chief Adviser Professor Muhammad Yunus welcomed the growing interactions between the two countries and emphasized the importance of increased visits as well as cultural, educational and people-to-people exchanges among SAARC (South Asian Association for Regional Cooperation) member states," the statement read.
"Professor Yunus also underscored the need to further boost Bangladesh–Pakistan trade and expressed hope that during Mr. Haider’s tenure, both countries would explore new avenues for investment and joint venture businesses."
