Pakistan Unveils IMF-Backed Climate Reform Plan
December 17, 2025
Pakistan and Russia are in active talks on a potential oil-sector agreement covering exploration, production, and refining, as energy ministries negotiate terms. The discussions reflect deepening energy cooperation as Pakistan seeks to lower imports costs and expand bilateral ties.
Read more: Pakistan, Russia Sign Protocol to Revive Steel Mills
Pakistan and Russia are holding discussion as possible comprehensive oil sector deal, Finance Minister Muhammad Aurangzeb told RIA’s news agency, with both nations’s energy ministries currently engaged in negotiations. The proposed cooperation could cover joint oil exploration, production, and refining opportunities, areas where Russia has extensive expertise and Pakistan has growing energy needs.
Aurangzeb noted that Pakistan would welcome a formal agreement with Russia in the energy sector, highlighting Moscow’s strengths and Islamabad’s interest in diversifying supply to reduce import costs. Russia has also discussed upgrading a Pakistani refinery as part of broader cooperation, according to comments from Russian Energy Minister Sergei Tsivilev in November.
The talks build on ongoing pattern of engagement in recent years, after Pakistan began importing Russian crude in 2023 as part of efforts to secure more competitive energy supplies amid global price volatility and shifting market dynamics. Aurangzeb further added that Russia and Pakistan are looking into potentially building another steel plant in Pakistan. Analysts say any formal oil pact with Russia could have strategic implications for Pakistan’s long-term energy security and economic stability, especially as Islamabad seeks to manage import bills and broaden energy partnerships.
