Pakistan to negotiate with Russia after US acknowledges right to buy discounted oil — finance minister
The country imports more oil products than it exports, so it has been trying for months to buy cheap oil from Russia.
The government expects $1.5 billion from the Asian Development Bank, which should come next week.
ISLAMABAD: Pakistan’s finance minister, Ishaq Dar, said on Thursday that the US had acknowledged his country’s right to buy cheap Russian oil. He also said that the government had told the right people to negotiate a good deal with Moscow for buying oil.
Dar just got back from a trip to Washington, where he went to spend a few days going to the annual meetings of the International Monetary Fund and the World Bank. During this time, he also met with high-level US officials to talk about Pakistan’s economic situation after the recent floods.
In an interview with Aaj News, he said, “The US government has agreed and said they have no problem if [Pakistan] wants to buy [discounted Russian oil].” “They are trying to come up with a way to set prices in the next month, and the G7 is a big part of that. It will suggest a price cap and make sure that countries don’t go over it when they are negotiating [a deal].
Pakistan is a net importer of oil products and has been trying for a long time to get cheap oil from Russia. The finance minister said that it was now able to reach that goal because it had gotten past the problem that was stopping it.
He told them that the government had told the right ministers to talk to Russia.
When asked about the country’s dwindling foreign exchange reserves, Dar said he was working with this team to figure out the country’s financial needs and projections for the next 12 months and put everything in place to meet them.
He also said that the government expected to get $1.5 billion from the Asian Development Bank in the next week.
The finance minister said again that Pakistan’s currency shouldn’t be worth more than Rs200 per US dollar. He also said that the US dollar was being smuggled into neighbouring Afghanistan, which the government needed to stop.