Finance Minister Muhammad Aurangzeb has expressed Pakistan’s interest in expanding energy cooperation with Russia, including increased crude oil imports and collaboration on establishing a new steel mill. This development follows a meeting with Russian Deputy Prime Minister Alexei Overchuk during the Boao Forum for Asia (BFA) Conference 2025 in China.
Pakistan and Russia, historically Cold War rivals, have strengthened ties in recent years through increased trade and dialogue. In 2023, Pakistan began purchasing discounted Russian crude oil and received its first shipment of liquefied petroleum gas from Moscow. In December 2024, both nations discussed cooperation on oil and gas offshore exploration and refining.
Pakistan aims to secure discounted oil from Russia to reduce its import bill, which heavily comprises energy imports. The first shipment in June 2023 included 45,000 tons of oil. Additionally, Pakistan seeks Russian collaboration to establish a new steel mill, aiming to bolster its industrial sector.
These initiatives are part of Pakistan’s broader strategy to strengthen its economy, which includes securing financial support from the International Monetary Fund (IMF) and increasing foreign exchange reserves to cover at least three months of imports.
