Pakistan is in touch with Moscow to import crude oil from Russia.  Foreign Office Spokesperson Mumtaz Zahra Baloch responding a question during the weekly news briefing on Thursday regarding import of gas and oil from Russia. The spokesperson stated we are in touch with Moscow to import crude oil from Russia. She said Prime Minister's Special Assistant Musadik Malik recently paid a special visit to Russia to discuss matters related to the import of gas and oil from Russia.

State Minister for Petroleum Musadik Malik few days earlier announced  that Russia has decided to provide crude oil, petrol, and diesel to Pakistan at discounted rates. Subsequently, Malik flew to Russia last week for talks on issues including oil and gas supplies. Pakistan struggles to meet domestic gas supply needs as winter approaches while battling to contain a current account deficit swelled by energy payments, mostly for oil.

The experts believed that apparent headway made with Russia for the purchase of its crude oil, petrol and diesel at discounted prices is a positive development for the country's wobbly economy. Struggling with an unprecedented liquidity crisis and a severe energy crunch due to global price shocks and disruptions, the government must not let this opportunity pass, especially since the American sanctions on Moscow, after the latter's invasion of Ukraine, have already been removed for low- and middle-income countries seeking Russian energy.

If there is one lesson that we must learn from the recent spikes in global energy prices and post-Covid supply disruptions exacerbated by the war in Ukraine, it is that we should quickly diversify our sources of energy procurement and lock long-term supply contracts to ensure price stability and availability. As the minister has pointed out, Pakistan requires at least 8pc to 10pc growth in energy supply each year if it is to achieve a 5pc to 6pc economic growth rate to create new jobs and alleviate poverty.

But the recent international oil and gas price shock and supply disruptions mean that a country like Pakistan, facing chronic balance-of-payments troubles, with energy imports making up the largest portion of its import bill, will never be able to meet its needs unless it devises plans to reduce its reliance on expensive imported fuel.

Credit : Independent News Pakistan-INP