‘Pakistan to purchase oil from UAE and Azerbaijan’

ISLAMABAD: Minister of State for Petroleum Mussadik Malik has announced that Pakistan will procure two ships of petroleum products from the United Arab Emirates (UAE) and one ship from Azerbaijan to meet the country’s energy demands and ensure a steady supply of oil.

Talking to Geo News, Malik said that Pakistan has signed two new agreements and one agreement has been reached with the United Arab Emirates, but it was yet to be finalised.

“Pakistan’s procurement plans include the purchase of two ships of petroleum products from the UAE on a government-to-government basis, along with one ship of petroleum products from Azerbaijan.”

The minister highlighted the International Monetary Fund’s package of $3 billion stating it will be for nine months. However, he acknowledged that further measures would need to be implemented to revitalise the economy once the IMF agreement concluded.

“The incoming government is expected to take the necessary steps to restore the economy,” the minister said expressing the confidence that there would be no issues with the IMF agreement.

Malik affirmed that the current government would complete its term in August, following which elections would be held as scheduled within a timeframe of 60 days. These upcoming elections will play a crucial role in shaping the future direction of the country, he said.

The minister emphasised the need for reforms in the electricity transmission system.

He said that to curb electricity theft, smart meters were being installed, particularly in areas where up to 80% of electricity was pilfered on certain feeders in provinces Punjab, Sindh and Khyber Pakhtunkhwa.

“This initiative aims to address the issue of power pilferage and promote efficiency in the energy sector,” he said.

He hinted at further jacking the petroleum levy by up to Rs7. However, he said efforts would be made to provide relief the masses in oil prices in the near future.

These strategic purchases and ongoing reforms in the energy sector aim to address the country’s energy needs, stabilize prices, and support economic growth in Pakistan.

Pakistan has recently made a significant move by purchasing oil from Russia using Chinese currency, marking a departure from the traditional practice of using the US dollar for such transactions.

This shift highlights Pakistan’s efforts to diversify its foreign exchange reserves and strengthen ties with Russia.

By conducting trade in Chinese yuan, Pakistan aims to reduce its dependency on the US dollar and enhance economic cooperation with its regional partners.