Islamabad, September 17, 2024 — Alexey Overchuk, Deputy Prime Minister of Russia, will arrive in Pakistan tomorrow for a two-day visit with a high-level delegation, Radio Pakistan reported.
This visit comes as Islamabad continues to expand its energy ties with Moscow. Last year, Pakistan began purchasing Russian crude oil at a discount amid soaring global fuel prices. Additionally, Pakistan received its first shipment of liquefied petroleum gas (LPG) from Russia in September 2023, marking a significant milestone in its energy relations with Russia.
During his visit, Deputy Prime Minister Overchuk is scheduled to meet with Pakistan’s President, Prime Minister, and the Deputy Prime Minister/Foreign Minister. Foreign Office Spokesperson Mumtaz Zahra Baloch highlighted that Pakistan and Russia maintain “cordial relations based on goodwill, amity, and trust,” evident in their growing cooperation in trade, energy, and connectivity.
Energy imports are a crucial part of Pakistan’s external payments, and the discounted Russian imports provide some relief amid the country’s economic crisis. Pakistan aims to import 100,000 barrels per day (bpd) of crude from Russia, compared to the total 154,000 bpd of crude it imported in 2022. This move is intended to reduce the import bill, ease the foreign exchange crisis, and help control inflation.
However, challenges such as increased shipping costs and lower-quality refined products compared to those from Pakistan’s primary suppliers, Saudi Arabia and the United Arab Emirates, are impacting the overall benefits of these imports. Analysts note that while the deal with Russia presents financial benefits, it also reflects the complex geopolitical dynamics influencing Pakistan’s energy strategy.
