Pakistan buys Russian oil but sees diversified future
Amid months-long delay in the revival of the International Monetary Fund programme, Pakistan now aims to address the concerns raised by the lender before implementing the proposed fuel subsidy plan, Bloomberg reported Tuesday.
Minister of State for Petroleum Dr Musadik Malik admitted that the IMF had some reservations about the government’s plan to raise fuel prices for wealthier people to finance a subsidy for lower-income people — the plan that aims to help protect the poor and vulnerable.
Malik said: “We want to make sure now that if we move forward, we take care of their concerns and make sure that they completely understand what we are trying to do and why.”
Musadik Malik said Pakistan has started to buy Russian oil, but the future lies in diversified, especially green, energy.
Malik confirmed that a first order was placed for Russian oil and would arrive within a month in Pakistan, which will then assess how much to import in the future.
“Based upon the results, we’ll move forward and see for what part of our portfolio we can use Russian energy,” he told media.
Asked if Pakistan will pursue more Russian imports, he said, “If today we get cheaper sources of energy, we’ll go there.”
Malik said Pakistan had been fully transparent and that its initial dealings with Moscow were far less than those of other countries — notably China and Pakistan’s rival neighbour India, whose enthusiastic buying of Russian oil has cast a shadow over New Delhi’s warming relationship with Washington.
“We have not faced any problems, either with the United States or with any other country,” Malik said.
“A whole lot of countries are legitimately getting energy from Russia,” he said.
Pakistan’s share “is a little drop, but it helps.”
Malik said he spoke with US companies about buying shale liquified natural gas, upgrading Pakistani refineries and storage facilities, exploring offshore oil and gas and starting horizontal drilling, a method the country does not yet use.
But Malik said his talks with the United States will also seek support for green energy in line with Pakistan’s goal of generating 30 percent of electricity from renewables by 2030, including a plan for widespread solar power on rooftops.
“Strategically, it’s very clear to us that the future of energy security is in green energy,” Malik said.
