Yet again Pakistani high-ups are hopeful to purchase Russian crude oil on cheap prices, which the government is highlighting on media that, after the Russian oil reached Pakistan then the prices of the refine petroleum will be stabilized in the country and it will provide to masses on low prices but it should be remember, in 2023 when Pakistan purchased crude oil from Russia that time the refineries objected that oil reached very expensive to Pakistan, although ministry of petroleum rejects all such news that was published in the main stream media but the concerns are still alive. While the government wants more crude oil to import form Russian to overcome on the petroleum crises in the country.
According to yesterday’s news reports, a major development is that, Pakistan agreed to import Russian crude oil at a discounted rate on the offer of Moscow.
During the Inter-Governmental Commission (IGC) meeting being held in Moscow, both sides agreed to restart crude oil trade from January 2025. Pakistan would import one cargo each month under arrangement. In the meeting, Pakistan’s delegation was led by Federal Minister for Energy Sardar Awais Leghari.
“Pakistan Refinery Limited (PRL) will import 12 cargoes from Russia in one year under the new understanding reached between the two countries,” a senior government official, who was part of the meeting, told the media.
Governor State Bank of Pakistan played a pivotal role during the IGC meeting for the payment mechanism. He resolved the mechanism would be made acceptable to both the countries for smooth transactions.
Both sides are upbeat to resolve the issue of payment mechanism through banking channels. The issues, including railways connectivity with Central Asian States and Russia from Pakistan, delayed project of $3 billion Pakistan Stream Gas Pipeline (PSGP) and the way forward to expedite bilateral trade, are being discussed. The final agreements to this effect are to be signed today (December 4), ushering in a new era of cooperation between Pakistan and Russia.
Pakistan Refinery Limited (PRL), the official said, will import Russian crude at a discounted rate. The profit the refinery would earn is to be utilized in its upgrade project besides incentives from government under Brownfield Policy.
According to a press release issued here on Tuesday, Minister for Energy Awais Leghari and Russian Minister for Transport Roman Starovoyt assessed prospects of expanding bilateral connectivity which would not only benefit the two countries but the whole region. The federal minister for energy is visiting Moscow to co-chair the 9th session of Pakistan-Russia IGC.
If we look at the agreement, socioeconomically it’s a great opportunity for Pakistan to overcome on its energy crises to important crude oil from Russia to down the petroleum prices.
Now the federal minster for petroleum, better knows that Russian crude oil will be cheaper or expensive. According to international prices the Russian crude oil, is nearly 70$ per barrel, if its reaches Pakistan cheaper than refine oil so, it will be good gesture but if it’s debatable like last year, then the federal government should rethink about it. This is also the need of the time that Pakistan should import refine oil from Russia and as well as import form the Islamic republic of Iran in the future.
On the other hand we will have to look at the situation that Pakistan should face the US pressure, for dealing with both allies (Iran and Russia) because, our high-ups portraying the foreign policy as an impartial, that will deal with every country separately. So it is also hoped that the federal establishment will farther continues its decisions for tackling the energy crises. Thus it’s hoped that the government will not only purchase cheap crude oil from Russia but also will make agreements with other countries for the open trade.
