ISLAMABAD: Speakers at a webinar on Saturday urged the government to fast track the process of economic and energy cooperation agreements with Russia after the recently signed memorandums of understanding (MoU).

It would ease the economic conditions for the citizens. There shall be no delays from the Pakistan side while the US has also conceded to Pakistan’s need for a discounted rate.

Transportation and freight will be the main constraints that may make the proposition difficult. Secondly, payment terms with Russian crude suppliers would be another impediment if not promptly handled and sorted out for smooth sailing. Refiners are concerned about payment arrangements and terms under prevalent conditions; where Russia is engaged in war with Ukraine, Pakistani banks may not open LCs for Russian crude oil.Also, Russians might not want to accept payment in the US dollars.

The webinar was organised by Devcom-Pakistan on “Russo-Pak economic and energy cooperation, scope and challenges”.

Senator retired Lt General Abdul Qayyum was the keynote speaker. The guest speakers included foreign affairs expert Dr Salma Malik, energy and environment expert Qaiser Aijaz. Hussain Ali Shah, Iftikhar Ahmed, Sarah Khan, Natasha Jameel, Maliha and Ayan Mitra.

According to a statement, Mr Qayyum said: “The recent MoUs with Russia are a long-awaited ice breaking that can lead to an important partnership and investments in defence and oil and gas development in Pakistan after the China-Pakistan Economic Corridor. But, the current challenges could be the extreme political polarisation in Pakistan, lack of foreign reserves and low productivity in every field, and balance of payment.”

He said Pakistan needed to have sustainable and balanced foreign relations while improving exports and attracting external investments.

Dr Salma Malik said: “The Pakistan-Russia energy cooperation deliberations is a welcomed step, yet needs to be viewed with cautious optimism, given the larger geo-economic dynamics.”

In a world with growing energy needs, conflicts such as that between Russia and Ukraine or China’s economic outreach play a significant role in the advancement of geopolitical interests.

Qaiser Aijaz said the Russo-Pak economic and energy development cooperation had a history. “Pakistan’s first five-year plan of 1950 was based on the Russian economic model and subsequent provision of technical and financial support for setting up the Oil and Gas Development Corporation in 1960 and Pakistan Steel Mills in the 1970s.

The Pakistan-China friendship also kept Russia at arms’ length though the cooperation between Russia-Pakistan remained limited. The recent developments are overwhelming and the momentum shall not meet any halt. Russia has set aside $14 billion for energy sector projects including $2.5 billion for gas pipeline projects in Pakistan.

Devcom-Pakistan Executive Director Munir Ahmed said: “A comprehensive Russo-Pak energy corridor is very crucial for both the countries. Strangely, overlooking the sacrifices of about 70 years, the US has left Pakistan in isolation for siding with China in the new US-Nato cold war against Pakistan’s iron friend.”

Published in Dawn, January 29th, 2023