Today, a high-level Russian delegation headed by the nation’s energy minister arrived in Pakistan in preparation for the upcoming 8th session of the Inter-Governmental Commission (IGC) on Trade and Cooperation, which will be held from January 18–20.
The delegation, which consists of 80 people, will have bilateral discussions on the much-touted $3 billion Pakistan Stream Gas Pipeline (PSGP) project as well as the long-term trade agreement for oil and liquefied natural gas (LNG).
It will arrive in Pakistan for three days of bilateral discussions organized through the IGC forum.
Views on cooperation in oil and gas production, hydropower, renewable energy sources, electric power, and other topics will be discussed between Islamabad and the Kremlin. Pakistan’s ability to negotiate transactions at a 30% discount would allow the nation to save over $2 billion every year despite its financial difficulties.
The discussion of discounted oil comes at a time when Pakistan is having difficulty supplying its LNG demands as its gas reserves are declining by as much as 10% annually and its ability to buy fossil fuels is being limited by its depleting foreign exchange reserves.
Musadik Malik, the state minister for petroleum, disclosed last month that Russia has agreed to supply crude oil at a reduced cost. This development may lower Pakistan’s import expenses for energy.
“An inter-governmental delegation led by the Russian energy minister will visit Pakistan next month and we will try to firm up all the details I have shared with you so we can sign the agreement to buy crude oil, petrol, and diesel at a discounted rate,” Malik said at a news conference.
He did not share specifics such as the discount offered by Moscow or how soon Islamabad would be able to import Russian petroleum products.
“The discounted rate will be the same as the rate being offered to other countries in the world,” he said.
