Trade with India: Given ‘right price’, Pakistan ready to import Indian oil

Countries plan to set up a 200km pipeline from Bathinda to Lahore for trade.

NEW DELHI:

In what could be an important Confidence Building Measure (CBM) between the two countries, Pakistan is not averse to importing petroleum products such as diesel and petrol from India if it gets “the right price was offered”, Petroleum Minister Asim Hussain said on Tuesday while on a visit to the Indian capital.

“A team from HPCL (Hindustan Petroleum Corporation Ltd) will come to Pakistan very soon to discuss prices (for exporting fuels),” Hussain told reporters on the sidelines of Petrotech 2012. “If right prices are given, we have no problems importing.”

Trade ties between the two nations have shown signs of a thaw recently. Early this year, Pakistan notified its negative list for India, which means barring 1,209 items, New Delhi can now export all products to the neighbouring country. The negative list contains products such automobiles and textiles.

Pakistan also agreed in-principle to grant India ‘Most Favoured Nation’ status over 15 years after it was given the same status by India.

In March this year, Pakistan’s then petroleum and natural resources secretary Muhammad Ejaz Chaudhry had discussed with his Indian counterpart G C Chaturvedi the possibility of Pakistan importing petroleum fuels from India.

Hussain said on Tuesday that if prices can be agreed upon, Pakistan can import petroleum fuels from India both through pipelines and sea routes.

India and Pakistan plan to set up a 200 kilometre pipeline from Bathinda in Indian Punjab to Lahore to trade petroleum products. India has surplus refining capacity, and is a major exporter of oil products while Pakistan meets most of its needs through imports from West Asian countries. Apart from HPCL, IndianOil will also benefit as the company has an oil storage depot in Bathinda, and a 12 million tonne refinery in Panipat, Haryana.

The minister also said on Tuesday that the country will offer 60 oil and gas exploration blocks in the next two months, and will discuss with his Indian counterpart possibilities of offering some of the blocks to Indian companies on a bilateral basis.


Published in The Express Tribune, October 17^th, 2012.