ISLAMABAD: Deputy Prime Minister of the Russian Federation, Alexey Overchuk, will arrive in Pakistan tomorrow, Wednesday, on a two-day visit accompanied by a high-level delegation, Radio Pakistan reported on Tuesday.
Islamabad last year started purchasing Russian crude oil at a discount as high prices caused by geopolitical tensions have caused fuel prices to more than double in Pakistan. Pakistan also received its first shipment of liquified petroleum gas from Russia last September, marking Islamabad’s second major Russian energy purchase.
“Deputy Prime Minister Overchuk will hold meetings with the President, the Prime Minister and the Deputy Prime Minister/Foreign Minister of Pakistan,” Radio Pakistan said about the Russian deputy PM’s Islamabad visit.
In a statement, Foreign Office Spokesperson Mumtaz Zahra Baloch said Pakistan and Russia enjoyed “cordial relations based on goodwill, amity and trust, which is reflected in the multi-faceted bilateral cooperation including in trade, energy and connectivity.”
Energy imports make up the majority of Pakistan’s external payments and discounted imports from Russia offer a respite as Islamabad faces an economic crisis. It is targeting 100,000 bpd of imports from Russia, compared with the total 154,000 bpd of crude it imported in 2022, in the hopes that will lower its import bill, address a foreign exchange crisis and keep a lid on inflation.
However, the benefits are being offset by increased shipping costs and lower quality refined products compared with the fuels produced with crude from Pakistan’s main suppliers, Saudi Arabia and the United Arab Emirates.
As a long-standing Western ally and the arch-rival of neighboring India, which historically is closer to Moscow, analysts say the crude deal would have been difficult for Pakistan to accept, but its financing needs are great.