ISLAMABAD: Minister for Petroleum, Dr. Musadik Masood Malik, has accused the private sector of reaping substantial profits from the import of discounted Russian oil without passing the benefits to the general public. This claim was made during a recent meeting led by Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, to finalize the agenda for an upcoming high-level meeting in Moscow.
Dr. Malik noted that the December 2022 visit significantly strengthened bilateral relations, focusing on energy cooperation. However, he expressed concerns that the cheaper Russian oil, intended to benefit the public, has only been profitable for the private sector. He emphasized the need for government refineries to utilize Russian oil to ensure public benefit.
Reports suggest the government is considering increasing imports of discounted Russian crude oil, though the specific quantities have yet to be determined. In July 2022, Pakistan’s five oil refineries highlighted that they could only process up to 30% of Russian crude locally due to technical and operational constraints. They also raised concerns about payment processing and letter of credit (LC) issues due to closed Russian banking channels.
Pakistan recently received its first shipment of 45,000 metric tons of Russian crude oil under the agreement with Moscow. The government is currently finalizing proposals to be shared with Moscow through diplomatic channels ahead of the high-level visit. Pakistan’s ambassador to Russia has been instructed to send a detailed wish list to Islamabad to incorporate it into the final agenda.
Story by Mushtaq Ghumman
