India

Pakistan Says It's Ready to Buy Russian Oil

Published OCT 20 2022

Story

Image credit: Reuters [via Al Jazeera]

The Facts

Pakistan's Finance Minister, Ishaq Dar, said Wednesday that his country was ready to buy Russian oil at prices equivalent to or lower than Indian rates amid Pakistan's severe economic crisis.
Indianexpress
According to Dar, who just returned from a visit to the US, Pakistan is "actively considering" purchasing Russian oil, while assuring that Islamabad would not turn to the Paris Club for debt rescheduling of $27B.
The Times of India
As for buying discounted Russian oil, the finance minister said Islamabad wouldn't sign a contract "on terms that are worse than India’s.” New Delhi has become Moscow's second-largest oil customer after China, which is currently purchasing Russian oil at a substantial discount.
The Express Tribune
At the "All Pakistan Chartered Accountants Conference 2022," Dar said he also had informed US State Dept. officials of Pakistan's plans.
The Express Tribune
The finance minister's remarks come as Pakistan faces a severe economic crisis, exacerbated by recent devastating floods. Economists are advising Islamabad to increase its foreign exchange reserves and reduce its spending on imports, most of which are comprised of oil and gas purchases.
Al Jazeera
Pakistan is the world's 35th largest importer of crude oil, importing $1.92B worth of crude in 2020-21. Meanwhile, facing a possible food crisis, Islamabad is now also looking at buying Russian wheat, according to a recent statement by Pakistan's ambassador to Moscow, Shafqat Ali Khan.
WION

Sources Split

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The Spin

Narrative A

Given the volatility and competition in the global energy market amid the Ukraine war, Pakistan should explore new ways to reduce its energy dependence and diversify its supply sources. Although it makes sense to enter into new energy partnerships — such as with Russia —Islamabad needs to explore its domestic energy potential and also focus on renewables.

The Fridaytimes

Narrative B

Pakistani relations are not only growing with Russia. Closer Pakistan-China ties and US security interests should be another reason for pragmatic re-engagement with the strategically important Asian country. Washington should not only intensify energy cooperation but also provide market access for Pakistani exports and encourage American direct investment. It's a crucial time for Washington to deepen energy and other ties to Islamabad.