The Kremlin supplies
Pakistan’s quest for a cheaper and alternate energy supplier has met some success.
Russia reportedly has agreed to provide crude oil, petrol, and diesel to Pakistan at discounted rates, and the mechanism is now being worked out.
This understanding has come at a critical juncture as Pakistan is deep in distress on its economic front, owing to a stagnated economy and dip in forex reserves.
It is, nonetheless, little known what will be the mode of payment and relaxation space.
But what seems certain is that the dollar shall not be the fiat in order, and the intention is to keep alive the supply chain in terms of oil supplies, and that too on a reworked diplomatic viability.
Procuring oil and gas from Russia has been on the horizon of geo-economics for a long time.
Former prime minister Imran Khan’s desire to tap the Kremlin for oil and wheat supplies landed in a controversy in the backdrop of Moscow’s aggression over Kiev.
But Prime Minister Shehbaz Sharif too was never lost on its vitality, as sooner than later the coalition government defied international pressure to strike an amicable balance on its trade nexus with Russia.
Thus, the new realignment is a win-win situation for Pakistan’s interests, and will go a long way in upgrading frosty ties with Russia.
The Pakistani delegation also explored the possibility of liquefied natural gas (LNG), and placed an import order of 450,000 tonnes of wheat at the rate of $372 per tonne.
The staple grain shall arrive in Gwadar from February 1, onwards.
The huddle on the sidelines of SCO Summit in Samarkand had agreed to broaden the trade base, and importing oil was a salient feature.
The flagship 1,100 kilometres project of $2.5 billion Stream Gas Pipeline from Kasur to Karachi is also on the cards.
With modalities penned, the initiative should be free from political wrangling, in an attempt to ensure its realization.
Moscow has risen as a competitive energy supplier.
There is no point in playing the camp card while rubbing shoulders with the Bear.