ISLAMABAD: A three-day session of Pakistan Russia Inter Governmental Commission (IGC) is scheduled to start on Wednesday to discuss and finalise the import of cheap Russian oil and Liquefied Natural Gas (LNG) to Pakistan and in this regard a Russian delegation has arrived in Islamabad on Tuesday.
According to sources, the commission’s 8th session on trade, economic, scientific and technical cooperation will be held from the 18th to the 20th of January in Islamabad. A high-level Russian delegation headed by Minister for Energy, N G Shulginov, arrived in Islamabad on Tuesday.
During the IGC, Russian delegation will be headed by its Minister for Energy, N G Shulginov while Minister for Economic Affairs, Sardar Ayaz Sadiq will lead Pakistani team and technical teams of both countries will discuss matters related to trade and investment, agriculture, energy, customs, industry, education, science and technology, information and communication technologies, communication (roads and postal service), railways and finance.
During IGC, both sides will negotiate on import of crude oil and petroleum products at a 30 percent discount and purchase of LNG from Russia, said sources. They added that if Pakistan is able to secure the deals at discounted rates, this would allow the cash-strapped country to save $2 billion per annum.
The sources said that both sides will also take up matters pertaining to avenues of enhanced bilateral trade and investment during this IGC. They said that the two sides will explore the opportunities and prospects for mutually beneficial cooperation in the oil and gas sector in Pakistan while introduction and use of Russian advanced technologies for the application of methods to increase oil and gas recovery at fields in Pakistan will also be discussed.
They said the two sides will take up avenues of bilateral cooperation in the field of hydropower and renewable energy resources. Similarly, intensifying cooperation with state and private structures of Pakistan in the field of geological exploration for hydrocarbons and minerals will be also discussed while already agreed matters pertaining to mutual cooperation are likely to be discussed and may be finalised during this IGC, said sources.
They added that State Minister for Petroleum Musadik Malik will also participate in the IGC while officials of Pakistan’s petroleum, economic affairs and foreign affairs division will also attend the 8th session of IGC.
Pakistan’s Minister of State (Petroleum Division) Musadik Malik had announced in December 2022 that Russia had agreed to provide crude oil at discounted prices, a development that could potentially bring down the energy import cost for Pakistan.
Pakistan’s Federal Minister for Finance Ishaq Dar had earlier said that Washington would not stop Pakistan from buying the commodity from Russia because neighbouring India has also been doing the same.
It is pertinent to mention that the two sides-Pakistan & Russia- had so far expressed their willingness to remove existing barriers and restrictions in mutual trade in goods, services.
