Pakistan and Russia are holding negotiations aimed at expanding cooperation in the oil and energy sector, with discussions underway at the level of the energy ministries of both countries, Finance Minister Muhammad Aurangzeb has said. The development signals a further deepening of bilateral economic ties, particularly in the strategically important energy domain.
In an interview with Russian state news agency RIA, Finance Minister Muhammad Aurangzeb confirmed that Pakistan and Russia are engaged in detailed consultations regarding potential collaboration in oil exploration, production, and refining. He stated that the matter is currently under active consideration by the relevant energy ministries on both sides.
The finance minister noted that Russia possesses significant expertise and technical capacity in the oil sector, especially in exploration, extraction, and refining. Pakistan, he said, views cooperation in these areas as highly valuable, particularly at a time when the country is seeking to strengthen its energy security and reduce dependence on costly imported fuels.
According to RIA, Muhammad Aurangzeb stated that a formal agreement in the oil sector could prove mutually beneficial if Russia agrees to move forward with Pakistan. However, he clarified that discussions are still at an initial stage and that various technical, commercial, and regulatory aspects are being carefully evaluated by both sides before any concrete decision is made.
The finance minister’s remarks come amid broader engagement between Islamabad and Moscow in the energy sector. Earlier, in November, Russian Energy Minister Sergei Tsivilev had disclosed that talks were held on the possible modernization of an oil refinery in Pakistan with the participation of Russian companies. That proposal remains under discussion as part of wider energy cooperation.
Observers see these developments as part of growing Pakistan–Russia relations, particularly in the economic and energy spheres. In recent years, Pakistan has sought to diversify its international partnerships, while Russia, facing Western sanctions following the Ukraine conflict, has been actively exploring new energy markets.
Pakistan’s interest is also driven by economic considerations. The country has been looking for alternative energy sources to manage high import costs and ensure stable fuel supplies. In this context, Pakistan began purchasing crude oil from Russia in 2023, marking a significant shift in its energy procurement strategy.
In addition to oil-sector cooperation, Finance Minister Aurangzeb revealed that Pakistan and Russia are also exploring the possibility of establishing a new steel plant in Pakistan. He emphasized that Pakistan’s current economic policy prioritizes trade and investment over reliance on external financial assistance.
According to the finance minister, expanding economic engagement with Russia aligns with Pakistan’s broader goal of attracting foreign investment, strengthening industrial capacity, and achieving long-term economic sustainability.
