Pakistan and Russia are actively engaged in high‑level discussions on a comprehensive oil sector cooperation agreement, Pakistan’s Finance Minister Muhammad Aurangzeb confirmed in an interview. The proposed partnership is expected to cover exploration, production, and refining cooperation. Aurangzeb emphasized that these areas align with Russia’s core strengths and expressed Pakistan’s strong interest in formalizing a robust bilateral framework.

In his comments published on Tuesday, the finance minister noted that energy ministries from both countries are currently reviewing the scope and structure of the proposed agreement. Islamabad is seeking to expand its energy portfolio while stabilizing energy costs and ensuring long‑term supply security. Russia as a major global oil producer is seen by Pakistani leaders as a key partner in helping achieve these strategic objectives.

The initiative builds on growing economic engagement between Pakistan and Russia following a shift in Islamabad’s foreign economic policy towards prioritizing trade and investment linkages. The finance minister highlighted Pakistan’s evolving approach, which places greater emphasis on mutually beneficial commercial cooperation rather than traditional aid relationships. This shift has opened opportunities across multiple sectors for both sides.

In addition to oil cooperation talks, Moscow has also engaged on discussions about upgrading refinery capacity in Pakistan. Russian Energy Minister Sergei Tsivilev confirmed in November that talks have taken place with Russian firms regarding potential modernization and capacity expansion of existing refining infrastructure. Such upgrades are expected to support Pakistan’s long‑term energy security goals and reduce dependence on high‑cost imports.

Pakistan began importing Russian crude oil in 2023, marking a significant expansion of bilateral trade in the energy domain. This move has contributed to diversifying Pakistan’s energy import sources and reducing costs at a time of economic pressures.

Beyond energy cooperation, Pakistan and Russia are exploring broader industrial collaboration. Aurangzeb noted that both governments are examining proposals for building a new steel plant in Pakistan. If realized, this project could further deepen economic ties and support industrial growth in Pakistan.