edit in The Nation, Jan 21, 2023
The eighth session of the Pakistan-Russia Intergovernmental Commission that was being held in Islamabad this week has resulted in major agreements between the two countries, especially in the area of energy cooperation. The most significant development is that Pakistan will pay for energy purchases from Russia—which will commence in late March—in currencies of friendly countries. This is something that has been at the centre of speculation for a while, and a deal has finally been agreed upon that will be mutually beneficial for both parties.
As per reports, during the meetings this week, the two sides discussed ways for improving bilateral economic and trade relations, with the focus mainly being on the provision of oil and gas to Pakistan at discounted rates. In addition to this, the countries signed an agreement on custom matters, a protocol on the exchange of documents and data on the customs value of goods transported between the countries, and a working agreement on aeronautical products. In addition to this, development of the Pakistan Stream Gas Pipeline Project (PSGPP) was discussed, along with avenues for doing business together and regional connectivity projects.
All of these developments are quite positive from Islamabad’s perspective, especially considering its energy woes, and the benefits that it can derive by bolstering its relations with a country like Russia. However, in the backdrop of the Russia-Ukraine conflict, Islamabad will face pressure from the EU and the US for pursuing such agreements. This is of course nothing new, and it has also divided officials at home, as was witnessed by the contradictory statements issued by FM Bilawal Bhutto and State Minister for Petroleum Musaddik Malik on the matter of purchasing crude oil from Russia.
The balancing act will not be easy considering our rapprochement efforts with Washington and keeping in mind that the GSP+ status afforded by the EU will be expiring later this year in December. Not to forget is the climate financing assistance that is being facilitated by the EU and the US. The Foreign Office will have its task cut out, but this is something that must be navigated because of how critical it is for Pakistan’s interests. India has more than doubled its energy purchases from Moscow since the start of the Ukraine war, and while we do not possess the same strategic autonomy as New Delhi, we will have to get creative and ensure that our alliances remain intact while we prioritise our national interests.
https://www.nation.com.pk/21-Jan-2023/russia-energy-agreement
