Islamabad (TDI): Pakistan is exploring the possibility of a new oil-sector agreement with Russia, as energy ministries from both countries continue discussions aimed at expanding cooperation, Finance Minister Muhammad Aurangzeb has said.
Speaking to Russia’s RIA news agency in an interview published on Tuesday, Aurangzeb said Pakistan was keen to deepen collaboration with Russia across the energy value chain, including exploration, production and refining.
“These are areas where Russia has considerable expertise,” he said, adding that Pakistan would welcome an agreement if Moscow agrees to move forward. He confirmed that discussions on the matter are currently being handled by the energy ministries of both countries.
Russia has already shown interest in Pakistan’s refining sector. In November, Russian Energy Minister Sergei Tsivilev said Moscow had discussed upgrading a refinery in Pakistan, with Russian companies expected to be involved in the project.
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Pakistan has intensified engagement with Russia in recent years, as Moscow looks to diversify its energy exports following Western sanctions over the Ukraine conflict, while Islamabad seeks to secure more affordable fuel imports to ease pressure on its economy.
In a significant step, Pakistan began importing Russian crude oil in 2023, marking a shift in its traditional energy sourcing.
Aurangzeb also revealed that both countries are examining the possibility of establishing another steel plant in Pakistan, signalling broader industrial cooperation beyond the energy sector.
Energy remains a central pillar of Pakistan’s economic planning, as the country seeks to balance rising demand with the need to reduce costs and ensure long-term supply security. Diversifying sources of oil and gas imports has become a key priority amid global market volatility.
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For Russia, expanding energy cooperation with South Asian markets aligns with its broader strategy of strengthening economic ties beyond Europe. Pakistan, with its growing population and energy needs, is viewed as a potential long-term partner.
Officials on both sides have indicated that sustained dialogue and technical-level engagement will be essential to translate discussions into concrete agreements, with any future deal expected to be guided by commercial viability and mutual benefit.
