ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif met with Russia’s energy minister in Lahore on Thursday, discussing the possibility of Moscow supplying oil and gas to the South Asian nation, according to a Pakistani government statement.
“Both sides agreed on the importance of (the) energy sector for the development of bilateral economic and trade relations,” the prime minister’s office said in a statement. “In this regard, views were exchanged on the long-term supply of oil and gas from Russia to Pakistan.”
Russian Energy Minister Nikolai Shulginov is visiting the country for an annual intergovernmental commission between Pakistan and Russia, scheduled for Friday.
Last year, the Pakistani government sent officials to Russia, after which Pakistan’s oil minister said Russia would sell crude oil at a reduced rate.
Pakistan is not traditionally a major importer of Russian oil and gas.
Moscow and Islamabad have also been working on a gas pipeline project for a long time without much success.
Oil and energy make up the largest portion of Pakistan’s import bill and the country is in the grip of a balance of payments crisis due to dwindling foreign exchange reserves.
Pakistan was unable to procure LNG international market as spot prices remain out of its range and shipments under long-term agreements remain insufficient to meet growing demand.
With local gas reserves dwindling, the country began rationing supplies to residential and commercial consumers. Local media also reported that oil supplies remain tight due to difficulties in paying for imports.
“Both sides agreed on the importance of (the) energy sector for the development of bilateral economic and trade relations,” the prime minister’s office said in a statement. “In this regard, views were exchanged on the long-term supply of oil and gas from Russia to Pakistan.”
Russian Energy Minister Nikolai Shulginov is visiting the country for an annual intergovernmental commission between Pakistan and Russia, scheduled for Friday.
Last year, the Pakistani government sent officials to Russia, after which Pakistan’s oil minister said Russia would sell crude oil at a reduced rate.
Pakistan is not traditionally a major importer of Russian oil and gas.
Moscow and Islamabad have also been working on a gas pipeline project for a long time without much success.
Oil and energy make up the largest portion of Pakistan’s import bill and the country is in the grip of a balance of payments crisis due to dwindling foreign exchange reserves.
Pakistan was unable to procure LNG international market as spot prices remain out of its range and shipments under long-term agreements remain insufficient to meet growing demand.
With local gas reserves dwindling, the country began rationing supplies to residential and commercial consumers. Local media also reported that oil supplies remain tight due to difficulties in paying for imports.
