On Wednesday, the Chairman of National Business Group Pakistan, President of Pakistan Businessmen and Intellectuals Forum, All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain welcomed the arrival of cheap Russian oil, terming it a great step to improve energy security and save foreign exchange. He said that attempts should be made to continue this process after the immediate inspection and refining of the trial cargo to relieve the public’s worried about inflation.
Mian Zahid Hussain said that if oil can be imported from Russia, which is engaged in war with the West, then why can’t gas be imported from Iran, another opponent of the Western bloc?
Talking to the business community, the veteran business leader said that according to the government’s claim, Russian oil is 15 to 18 per cent cheaper than other sources, which will not only save costs but will also have to be paid for later.
He added that payments for Russian oil could also be made in Chinese currency, which would not burden the foreign exchange reserves but would help stabilise them.
The business leader said that if Pakistan were to import 50% of its oil from Russia, it would be possible to save one and a half to two billion dollars annually, and this could become the basis for Pakistan’s energy security, which would further improve relations between the two countries.
He said the move could transform friendship into a brotherhood, help control inflation, and balance Pakistan’s relations with the Western and Eastern blocs.
Mian Zahid Hussain further said that India is importing forty per cent of its oil from Russia, while we have wasted much time. Indian refineries are modern and ‘deep conversion’, producing more diesel and petrol and less furnace oil.
If the refineries in Pakistan are upgraded, more value-added products can be produced, which will benefit the Pakistani economy, he said.
In May last year, a litre of petrol was available for Rs150 and a litre of diesel for Rs144. Although the current government has reduced the price of gasoline and diesel in the past month, the cost of diesel and petrol is still very high compared to the last financial year, due to which inflation has crossed 38%.
Pakistan imports more than eighty per cent of its crude oil and petroleum products to meet domestic demand.
The country’s inflation reduction will be possible if electricity generation is shifted to solar energy instead of petroleum products. Also, crude oil import from Russia for a long period is ensured.