Islamabad:Pakistan is inclined towards accepting a Russian proposal for LNG supply via the Pakistan Pipeline, while simultaneously exploring options that do not antagonize the United States over this deal.
According to reports, the government has assigned Minister for Petroleum Muzaffar Malik to conduct feasibility studies in this regard, considering actionable options while keeping in view the sanctions imposed by the U.S. on Russia and Iran. The objective is to strike a beneficial deal that fulfills Pakistan’s energy needs.
Sources indicate that Pakistan is eager to proceed with the LNG deal involving Russia but aims to achieve this objective without displeasing the United States. It is noteworthy that Russian President Vladimir Putin had expressed readiness to Prime Minister Shahbaz Sharif during a separate meeting at the Shanghai Cooperation Organization summit to construct a gas pipeline to supply LNG to Pakistan via Iran, which would later be connected to India.
Currently, various ministries including the Ministry of Petroleum are actively initiating preliminary work on this matter and are exploring solutions to circumvent American sanctions. Pakistan and Russia’s bilateral trade currently stands at an annual $800 to $900 million, with efforts underway to increase this figure.
All relevant ministries of Pakistan have been instructed to seek actionable solutions to increase trade to $20 to $25 billion annually, considering regional and international realities. It remains evident that due to the conflict with Ukraine, Russia has seen a 70% decline in trade with European countries, prompting it to explore new markets, including South Asia.
