Russia offers petrol supply to Pakistan on delayed payments

ISLAMABAD – Russia has reportedly expressed readiness to supply petrol to Pakistan on deferred payments, a move that will provide a breathing room to the flood-hit South Asia country facing economic crisis. 

A major chunk of Pakistan’s foreign exchange reserves is utilized to import petroleum products. However, the supply of oil on delayed payments will not only stablise the forex reserves but also save the country from defaulting on its international obligations regarding repayment of loans. 

The development comes days after Prime Minister Shehbaz Sharif held meeting with Russian President Vladimir Putting on the sidelines of the Shanghai Cooperation Organization (SCO) in Samarkand. 

Reports said that both high ups discussed matters related to oil, gas and wheat supplies to Pakistan from Russia during the meeting.

The US has also not raised any objection over the proposed deal amid Pakistan's economic woes deepened further after massive floods. 

The Pakistani government is yet to confirm the development officially. 

On September 15, Putin during his meeting with Shehbaz Sharif expressed his willingness to supply gas to South Asian country. Pipeline gas supplies to Pakistan were possible and that part of the necessary infrastructure was already in place, Putin said.

Recalling bilateral ties with Pakistan, the Russian president termed Islamabad a priority partner in Southeast Asia and Asia as a whole, saying relations between the two sides are developing positively.

He also expressed condolences over the loss of life from natural disasters, and the unprecedented flooding in Pakistan.