While every Pakistani condemn invasion of country, war, exploitation and human right violations by anyone geographically, they are also nervously looking at how they will be saved from growing inflation, rising commodity prices and rupee devaluation by their government and long term strategic friends.
So Pakistan must consider buying oil from all sources offering discounts including Russia because of the followings reasons:
1- Poor economic conditions, Growing current account deficit (CAD), devaluation of PKRs. require lowering Oil and Gas bills and by reducing imports and develop alternate channels, and buying oil from Russia will save us 25-35% from market rates.
2- High dependency on Oil & Gas import as our power generation companies are either on Coal, Gas or Oil, and buying costlier oil shall adversely affect Inflationary numbers and push Commodity & logistic prices out of roof. We cannot afford protests by masses in road and on blogs.
3- Our next door neighbor India is buying from Russia in interest of their people.
4- USA & EU despite trade sanctions origination by them, much economically stronger than Pakistan, are still importing Oil or Gas from Russia to control Inflation, in their national interest.
5- Offering subsidy on Oil products by Pakistan is costing Rs.100Mn./Month and passing on this shall worsen real inflation, and withholding this differential from users, is adversely affecting government exchequer.
USA and EU are our long term strategic partners and must understand Pakistan needs stabilisation politically and economically, and should not act like China to make friends weaker when in times of need. One sided friendship or brotherhood does-not go long way.
(Abbas Mirza – the writer is C-Suite Executive and a former General Manager of Operations, Chief of Compliance and Regulatory affairs at Pakistan Stock Exchange)