India and Pakistan partitioned and started their journey at the same time in 1947. Today India enjoys enormous respect and sway in the globe, but Pakistan has none to support. India bagged the best economic oil deal from Russia, without any acrimony or sanction from the US-West, the Pakistan delegates approached the Russian authorities after being cajoled and coerced by former PM Imran Khan but came back empty-handed. Why?
Pakistan is reeling under severe crises, including food and energy. The fuel prices have rocketed to exorbitant heights, throwing the entire population in jeopardy. The colossal debt coupled with massive floods has plunged the economy into the worst extremity. The fragile Pakistani government has now approached the Russian government with a request to provide a 30-40 per cent discount on crude oil – a treatment similar to that worked out with India. Russia however has declined to honour and is reportedly unwilling to offer its crude inventory at such cheap rates.
Moscow refused to provide 30-40 percent discount
Moscow has refused to give Pakistan a 30-40 per cent discount on crude oil, citing reasons that volumes had already been booked to oversee a backlog of receipts from other buyers in the market.
A delegation comprising Dr Musadik Malik, Minister of State (Petroleum Division), Capt (R) Muhammad Mahmood, Additional Secretary In-charge (Petroleum Division), and other senior government officials arrived in Moscow last week to secure a favourable deal, but had to return empty-handed.
So far, the talks haven’t yielded much clarity for both parties, but the Russian side offered assurances to the Pakistan side and will share its responses later through diplomatic channels. It is notable mentioning that Russian oil is cheaper than global oil prices and can be sorted in Pakistani refineries, and one private refinery already has previously used Russian crude oil to produce finished products.
The Russian side also requested Pakistan to first honour its commitment to the Pakistan Stream Gas Pipeline (PSGP) project. The project model under the GTG arrangement has already been finalized, with only a few clauses of the shareholding agreement pending completion.
Pakistan is on the threshold of a severe economic disaster with no bail-out proposition
While Pakistan talks to Russia for a “crude bailout”, it is no secret that Islamabad currently has no long-term plans for curbing fuel shortages, and storage for supply in the market is rapidly dwindling due to increased demand.
The current political turmoil in Pakistan is also responsible for its dismal bargaining power. Pakistan today is on the threshold of a severe economic disaster with no prospects of revival unless there is a sea-change in the political system that could establish a strong democratic government. The Army has always dictated its terms while extracting its illegitimate share of pounds of flesh from all governments. It is a universal fact that the Pakistan Armed personnel are one of the most affluent while the common citizens remain as deprived and underprivileged as ever.
Can there be a strong democratic government in place, which could wield adequate constitutional authority and people’s will to curb on its rowdy military establishment? And that is the only remedy left to the hapless citizens of Pakistan.
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