KARACHI: Finance Minister Muhammad Aurangzeb on Thursday expressed Islamabad’s interest in importing more crude oil from Russia to fulfill its energy requirements and seeking Moscow’s collaboration to build a new steel mill in Pakistan, the finance ministry said.
Aurangzeb met Russia’s Deputy Prime Minister Alexei Overchuk on the sidelines of the Boao Forum for Asia (BFA) Conference 2025, currently underway in China, to discuss bilateral ties, trade and investment between the two countries.
“The bilateral talks focused on strengthening energy cooperation, with Pakistan expressing interest in expanding the procurement of crude oil and investments in oil and gas exploration,” the finance ministry said.
Pakistan and Russia, once Cold War rivals, have strengthened ties in recent years through increased dialogue and trade. In 2023, Islamabad began purchasing discounted Russian crude oil banned from European markets due to Russia’s war in Ukraine and also received its first shipment of liquefied petroleum gas from Moscow.
In December last year, Russia and Pakistan held intergovernmental meetings in Moscow and discussed cooperation on oil and gas offshore exploration and refining, according to a Reuters news agency report.
Cash-strapped Pakistan has long planned to import crude oil from Moscow at discounted rates. Its first shipment of Russian crude oil in June 2023 consisted of 45,000 tons of oil. Russia welcomed Pakistan’s decision to buy oil from it as it increased the search for new buyers in the wake of European sanctions.
Islamabad is trying to secure discounted oil from Russia in hopes it will cut down its sizable import bill, which comprises expensive energy imports.
Pakistan is also trying to strengthen its debt-ridden economy with the help of the International Monetary Fund’s (IMF) financial bailout packages. The lender wants Islamabad to increase its depleting foreign exchange reserves to a level that could finance three months of imports.
Pakistan currently holds $10.6 billion in foreign exchange reserves that cover about two months of imports.
Separately, the finance minister also discussed collaborating with Russia on building a new steel mill in Pakistan.
“Pakistan’s keen interest in establishing a new steel mill with Russian collaboration was also highlighted,” the finance ministry said. “The minister stressed the importance of feasibility studies and cost assessments to move the project forward.”
A team of technical experts from Russia arrived in Pakistan in January to assess Pakistan Steel Mills (PSM), one of several firms Islamabad wants to sell to revive loss-making entities, as it strives to deliver reforms under a $7 billion International Monetary Fund bailout.
Russian Ambassador to Pakistan Albert P. Khorev this year announced cooperation with Pakistan in the energy and industrial sectors, including the modernization of a state-owned steel mill.
Aurangzeb reaffirmed Pakistan’s commitment to strengthening its economic and trade relations with Russia, saying he was excited about expanding bilateral cooperation in key areas of mutual interest, the ministry said.
