File photo of oil barrels. Ali al-Saadi—AFP
Not too long ago, Western powers—especially America—took umbrage at countries getting in touch with Russia for trade because of Moscow’s invasion of Ukraine. Then-Pakistani prime minister Imran Khan’s visit to Russia on the eve of the invasion drew much criticism from the West, despite Europe continuing to import oil and gas from Russia even as it helped Ukraine fight-off the Russians. The tide now appears to have shifted, as there has been no similar outrage over Pakistan’s incumbent PMLN-led coalition government securing a strong commitment from Moscow for the import of crude and other products at reduced prices under a government-to-government arrangement.
According to the state minister for petroleum, a high-powered Russian delegation will visit Islamabad next month to settle modalities and price. He said Islamabad has also initiated talks with the Russian government for long-term contracts of Liquefied Natural Gas (LNG), while also starting negotiations with private Russian companies for the supply of LNG on an urgent basis. Ties with Iran—hampered after Pakistan engaged in a military exercise with Azerbaijan that Tehran did not like—also appear to be on an upswing, with Iran set to donate liquefied petroleum gas (LPG) worth £2 million to Pakistan within the next 10 days to meet the increasing demand for gas in winter months. This will be in addition to the import of over 20,000 million tons of LPG that state-run companies SSGC, SNGPL, and PARCO are importing monthly.
Pakistan is now getting ready for a new era where Russia will once again—decades after then-Soviet Union contributed extensively to the construction of the Pakistan Steel Mills—become a key player, providing much-needed fuel and gas to shore up our energy needs. The latter will come through PakStream—a 1,122km gas pipeline connecting Karachi in Sindh to Kasur in Punjab—being developed with Russian support to increase the country’s capacity to transport imported gas inland. Additionally, the Government of Pakistan has approved a deal worth nearly $112 million to import 300,000 tons of wheat from Russia to meet its domestic shortfall. Endorsed by the Economic Coordination Committee, the deal comes as Pakistan struggles to balance its fragile economy and manage the aftermath of the devastating floods that killed more than 1,700 people and affected some 33 million.
Pakistan is in the midst of an economic crisis that shows no signs of abating. To achieve prosperity, the country must take advantage of the dawn of this new era, securing new geopolitical alignments while ensuring its traditional allies are not ignored.