Petroleum ministry sources also confirmed that the terms and rates would be finalized during the visit of a delegation from Moscow to Pakistan, which is scheduled from January 23 next year. Mussadiq Malik said, ‘Russia will give us crude oil at a concessional rate. He will give us discounts on refinery products, petrol and diesel. ‘Talks with Russia regarding oil and gas supplies have been very positive.’ Now the complication for Pakistan rests on what import price cap it will adhere to to get supplies from Russia through the crucial deal.
It is not easy for Pakistan to buy oil
On the one hand, the limit of $60 per barrel imposed by the G-7 countries and the European Union (EU) on Russian marine oil begins this week. Moscow, on the other hand, has made it clear that it will not sell oil to countries that comply with the cap. Apart from this, sources also confirmed that the US has also asked Pakistan’s Finance Minister Ishar Dar to buy oil from Russia under the same $60 per barrel cap. This puts Pakistan in a difficult position as Russia may not agree to provide oil supplies to Pakistan if it remains under the G7 and EU cap. If Islamabad decides to agree to different terms with Russia, it will jeopardize its relations with the US, the G7 countries and the European Union.
what did america say
“The question now is whether Russia will agree with Pakistan on sale at a fixed price, it will be clear during the visit of the Russian delegation,” said a source in the petroleum ministry. Pakistan’s cash crunch and tight financial position make it almost impossible for it to ignore concerns from the US and the EU, especially after Washington said it had no problem with Islamabad buying oil from Russia as long as That he takes his own decisions with the circumstances.
Pakistan could not satisfy IMF
The development comes at a time when Pakistan’s ninth review with the International Monetary Fund (IMF) and tranche of $1.2 billion is delayed after Islamabad failed to satisfy the IMF in its assessment report The team’s tour of Pakistan was delayed. It is believed that the IMF bailout package to Pakistan was revived with the support and influence of the US and now that Pakistan is growing closer to Russia to meet its deteriorating energy needs, the balance of relations with the two countries should be kept relevant. To keep the deal has to be handled smartly.