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August 25, 2026
Pakistan’s ECC has approved a PSO-OQ Trading agreement aimed at expanding energy cooperation with Oman and strengthening fuel supply options.
Pakistan has approved a proposed fuel supply agreement between Pakistan State Oil (PSO) and Oman’s OQ Trading Limited, opening the way for closer cooperation between the two companies in the energy sector.
The approval was granted by the Economic Coordination Committee (ECC) of the Cabinet during a meeting chaired by Finance Minister Muhammad Aurangzeb. The Petroleum Division had placed the proposal before the committee for consideration under an existing intergovernmental arrangement between Pakistan and Oman.
The proposed Sale and Purchase Agreement (SPA) is expected to provide a formal framework for energy-related transactions between PSO and OQ Trading, according to the Finance Division.
The move comes as Pakistan seeks to improve the resilience of its fuel supply network and reduce exposure to disruptions affecting major regional shipping and energy routes. The country’s reliance on imported petroleum makes stable access to overseas supplies particularly important amid continuing uncertainty in the Gulf.
PSO had already engaged with Omani suppliers earlier this year over additional fuel purchases. Those discussions led to the arrival of petrol and diesel cargoes from Oman, providing an alternative source of petroleum products for the domestic market.
The latest approval could allow the two sides to build on that commercial engagement through a more structured arrangement.
Pakistan is simultaneously seeking to expand its broader energy relationship with Oman. Petroleum Minister Ali Pervaiz Malik recently held talks with Omani Ambassador Fahad Bin Sulaiman Bin Khalaf Alkharusi on strengthening bilateral cooperation.
During the meeting, Malik outlined Pakistan’s efforts to widen its sources of imported energy and improve supply security. He also raised the possibility of obtaining preferential energy cargoes from Oman to help meet domestic requirements.
The discussions extended beyond fuel supplies to potential cooperation in the upstream sector, including exploration and production. Oman indicated its willingness to consider Pakistan’s energy requirements and support closer bilateral engagement.
The PSO-OQ Trading agreement is part of Islamabad’s wider effort to strengthen energy partnerships with Gulf countries and develop additional procurement options.
Pakistan is also working to broaden cooperation with other regional suppliers. PSO recently moved to expand its longstanding relationship with Kuwait Petroleum Corporation, with discussions covering petroleum products, logistics, terminal facilities and possible refining cooperation.
The government hopes that broader engagement with Gulf energy producers will provide greater flexibility in sourcing fuel and strengthen Pakistan’s ability to manage future supply disruptions.
