Pakistan and Russia are in talks over a potential agreement in the oil sector, Finance Minister Muhammad Aurangzeb told Russia’s RIA news agency in remarks published on Tuesday. The discussions are part of broader efforts by both countries to enhance cooperation in energy and industrial sectors.
Speaking to RIA in an interview, Aurangzeb said Pakistan was keen to expand collaboration with Russia in areas such as oil exploration, production, and refining. “All of these areas are Russia’s strengths. And we would be very happy if Russia agreed on an agreement in this sector with Pakistan,” he said.
The finance minister added that the matter is currently being discussed at the ministerial level. “At present, the issue is being discussed by the energy ministries of both sides,” Aurangzeb noted, indicating progress toward formal engagement.
Russia has also held talks on upgrading an existing refinery in Pakistan, with Russian companies involved in the discussions. Russian Energy Minister Sergei Tsivilev had confirmed in November that refinery modernization was under consideration as part of expanding bilateral energy cooperation.
Pakistan has increased engagement with Russia in recent years, particularly after Moscow sought new energy markets following Western sanctions imposed over the Ukraine conflict. Islamabad, facing rising energy costs, began purchasing Russian crude oil in 2023 as part of efforts to diversify imports and reduce expenses.
Aurangzeb further revealed that both countries are exploring the possibility of constructing another steel plant in Pakistan, signaling growing industrial cooperation beyond the energy sector.
The developments reflect Pakistan’s broader policy shift from reliance on foreign aid toward trade, investment, and long-term economic partnerships, with Russia emerging as a key potential partner in energy and industrial development.
