In Moscow, Mohammad Ali, Pakistan's interim energy minister, announced on Thursday that Islamabad is exploring the possibility of entering into a long-term agreement to purchase between 0.7 million and 1 million tons (equivalent to up to 20,000 barrels per day) of Russian oil annually, as reported by the TASS news agency.
This move comes as Pakistan has been acquiring discounted crude oil from Moscow following European market bans on Russian exports due to the Ukraine invasion.
Pakistan's initial shipment of this oil, facilitated by the government, arrived in June, and negotiations are in progress for a second government-to-government shipment.
Additionally, Pakistan's first privately-imported Russian crude oil was brought in by the country's refiner, Cnergyico, last week. The cost of oil and energy comprises a significant portion of Pakistan's import expenses, and the nation is grappling with a balance of payments crisis caused by depleting foreign reserves.
Pakistan is also contending with the challenges of high inflation and foreign exchange constraints, exacerbated by the surge in liquefied natural gas (LNG) prices following Russia's Ukraine invasion, resulting in widespread power shortages.
Earlier this month, Pakistan LNG Limited (PLL), a government-owned entity responsible for LNG procurement from the global market, awarded a contract to commodities trader Vitol for the delivery of an LNG cargo in December, marking the country's first spot purchase in over a year.