Pakistan said Thursday that it is buying discounted Russian crude oil with the implicit approval of the United States and the first shipment is expected to arrive in the country soon.
Masood Khan, the Pakistani ambassador to the U.S., made the remarks at a conference in Washington organized by the Wilson Center’s South Asia Institute on the future of relations between the two countries.
“We have placed the first order for Russian oil, and this has been done in consultation with the United States government. There’s no misunderstanding between Washington and Islamabad on this count,” Khan said.
The top diplomat was responding to suggestions the energy purchase could undermine Pakistan’s already tumultuous relationship with the U.S.
“They have suggested that you are free to buy anything below or up to the price cap and we have abided by that agreement. I think Washington is fine with that,” Khan added without elaborating.
He spoke just hours after Pakistani Prime Minister Shehbaz Sharif told the parliament in Islamabad his government was set to receive an inaugural shipment of Russian crude oil.
“As we speak, the Russian oil is being loaded to arrive here,” Sharif said, after securing a vote of confidence from the National Assembly, the upper house of parliament, amid opposition allegations he had lost an already thin majority in the house.
Last week, Petroleum Minister Musadik Malik said Pakistan had made its first purchase of Russian crude oil at a discounted rate and the cargo would reach the country next month via sea. He did not share further details, saying Islamabad plans to increase the import volume to 100,000 barrels per day if the first transaction with Moscow goes through smoothly.
The move was expected to bring a much-needed respite to the cash-strapped South Asian nation, with energy imports making up most of its external payments.
Reserves have fallen
The Sharif government has been struggling to avert a balance of payments crisis as it awaits the resumption of financial lending from the International Monetary Fund. The Pakistani central bank’s foreign exchange reserves have lately fallen to nearly $4.5 billion, barely enough to cover a month of imports.
A U.S. State Department spokesman, while responding to Pakistan’s purchase of Russian petroleum products at a news conference on Tuesday, said Washington has been a “big proponent of the price cap” to ensure Russian energy is not kept off the market.
“Each country is going to make its own sovereign decisions as it relates to its energy supply. … But we also need to take steps to ensure that Russian energy markets are not turning out to be a windfall for [Russian President Vladimir] Putin’s war machine,” Vedant Patel said.
Ties with US back on track
Khan told the audience in Washington Thursday that Pakistan’s ties with the United States had suffered a “brief period of uncertainty” after the U.S.-led foreign military withdrawal from Afghanistan in August 2021, when the then-insurgent Taliban seized control of the country.
Despite being an ally of the U.S., Islamabad was accused of sheltering and supporting Taliban insurgents while they were battling the U.S. and NATO troops for almost two decades.
The Pakistani ambassador insisted that the relationship with the U.S. was back on track and both sides were working to scale up economic and security partnerships.
“We are back in business … It is important that the United States restores for Pakistan foreign military financing and foreign military sales, which were suspended by the previous [Trump] administration,” the Pakistani ambassador said.
Former U.S. President Donald Trump cut military cooperation with Pakistan, citing its covert support for the Taliban, charges Pakistani leaders rejected.
Khan stressed the need for Islamabad and Washington to work together to eliminate the Islamic State-led threat of terrorism stemming from Afghanistan, noting a surge in terror attacks in Pakistan since the Taliban’s return to power in the strife-torn neighboring country.
He said Pakistan was politically engaging with Taliban authorities to persuade them to deny Afghan space to terrorists waging deadly attacks in his country and those linked to Islamic State-Khorasan, the regional branch of Islamic State. Khan asserted that the U.S. was also “talking directly to Taliban cabinet ministers.”
“Let’s work together to eliminate this threat in the region. Today, it’s a threat to Pakistan and Afghanistan. If unchecked, it will spread to other parts of the region and beyond. Urgent action is needed to fight this menace.”
The Pakistani diplomat also emphasized the need to work “collectively for promoting women and girls’ education and inclusive governance in Afghanistan.”
No foreign government has recognized the Taliban as the legitimate ruler of Afghanistan. The international community is pressing the Taliban leadership to remove bans on women’s access to education and work. The hardline de facto authorities are also required to give representation to all Afghan ethnic groups in their administration.
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