In order to ease the present energy crisis, which resulted from the balance of payments crisis, Pakistan has stated that it will purchase inexpensive Russian oil.
Due to the banks’ refusal to clear letters of credit (LCs) for the import of crude and petroleum products, Pakistan has been unable to obtain oil. Recent declines in the nation’s foreign exchange holdings have left it with only around $4.6 billion in reserves, hardly enough to last three weeks of imports, largely of oil.
The annual intergovernmental commission on commerce and economics is taking place in Islamabad, and Russian Energy Minister Nikolay Shulginov stated they are nearing completion of the agreement and that oil exports would start by the end of March.
He further announced that the payments will be made in the ‘currencies of friendly countries,’ without elaborating on which currency would be used.
‘We have already decided to draft an agreement to sort out all the issues that we have with regard to transportation, insurance, payments and volumes. These issues are in the final stage of the agreement,’ Shulginov said in a statement on Saturday.
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