Daily Times

Pakistan is faced with its worst energy crisis with consumers being warned that gas will only be available three times a day. The energy deficit is predicted to persist all winter. Just last month, Finance Minister Ishaq Dar hinted at the possibility of buying discounted oil from Russia, adding that “US officials had been informed of this intention.” India and China are currently the biggest exporters of Russian crude oil; prompting the G7 to introduce price caps on Russian oil to prevent the country from generating revenue. This doesn’t make much sense since countries like China and India and already buying it at an imported price.

From the looks of it, Pakistan wants in too. It has sent an official delegation to Moscow to explore precisely this possibility. Pakistan has been wary of importing its gas from Russia over fears of international sanctions from the US and its allies. But with dwindling gas reserves and an account deficit swelled by energy payments, the country is now looking to attract new bids after being abandoned by its usual allies. An overwhelming 56 per cent of the country’s refined petroleum is imported from UAE and the rest from Saudi Arabia-global demand for energy products has skyrocketed amid Russia’s invasion of Ukraine. The cash-strapped country no longer has the financial means to import its LNG, which is being bought by lucrative European markets who are willing to pay far more to secure gas cargoes.

It is predicted that Pakistan will save over $2 billion annually in the event that the energy deal with Russia goes through. Therefore, the country must explore all options, and it seems that Moscow’s gas supply pipelines are the perfect solution to the country’s energy shortage. Local refineries in Pakistan can also process Russian crude, which would ease the pressure on the country’s foreign exchange reserves. Currently, Pakistan is meeting less than 40 per cent of the fuel requirements for its population of nearly 230 million people. The country’s survival is contingent on its ability to find creative solutions to its problems For now, it would appear that Russia has all the answers. *