NEW DELHI, Jan 14: Pakistan, which bans imports of diesel fuel from neighbouring India, plans to review policy to try and reduce a heavy dependence on Kuwaiti supplies, Petroleum Secretary M. Abdullah Yusuf told Reuters on Wednesday.

"Diesel imports to Pakistan from India are on our negative list, but we are willing to review this. We are ready to look at it," Mr Yusuf said. "Actually, we would be very favourably inclined...we would like to see it happen as early as it is practically possible," Mr Yusuf said on the sidelines of an energy conference in New Delhi.

He said Pakistan imports 4.5-5.0 million tons of diesel annually, mostly from Kuwait. Reliance Industries Ltd, India's sole private refiner, which is likely to export 5.5 million tons of diesel in the year to March 2004, has already begun discussions to export the fuel to Pakistan.

"We've held informal talks. We will continue our discussions," P. Raghavendran, president of Reliance's refinery business, told reporters. Raghavendran said Reliance's 660,000 barrels per day refinery in the western state of Gujarat was an ideal choice for neighbouring Pakistan to import the fuel.-Reuters