Pakistan Eyes Central Asia as Energy Trade Partner, Focuses on Turkmenistan

Pakistan seeks to establish Central Asia as its energy trade partner, particularly Turkmenistan. The goal is to secure gas supplies for Gwadar, intending to transform it into a global energy center. This ambition involves attracting China and European countries to develop liquefied natural gas (LNG) facilities and export fuel.

Musadik Malik, State Minister for Petroleum, outlined these plans in a recent media interaction. He emphasized that Pakistan is keen to become a trading partner with Central Asia, a significant energy source. He suggested transporting gas from Turkmenistan, which has vast gas reserves on par with Qatar, via a pipeline to Pakistan.

Malik invited global players, particularly China and Europe, to establish LNG facilities in Gwadar for exporting gas internationally. He also refuted rumors circulating on social media that Pakistan’s Russian oil supply originates from India.

The minister underscored Pakistan’s need to secure short-term and long-term LNG supply contracts. He anticipates an increase in LNG availability if the war in Ukraine ends, potentially leading to an energy surplus in the coming years.

Separately, Malik announced a forthcoming LNG purchase agreement with Azerbaijan to alleviate Pakistan’s gas crisis. This arrangement will ensure a steady and affordable monthly supply of LNG to Pakistan and promises to alleviate domestic gas shortages in the upcoming winter season.

Malik assured that the agreement with Azerbaijan, which involves establishing 9 to 10 cargo factories in Pakistan this year, would help the nation satisfy its energy requirements. He also addressed concerns over potential gas shortages in winter, attributing them to infrastructure issues in parts of Karachi that the government is prioritizing.

The minister also outlined the government’s strategy to encourage investment from the Gulf Cooperation Council (GCC) nations under the Economic Revival Plan. He expressed confidence that this could stimulate a significant capital influx, creating jobs for the youth and women.

On matters concerning the International Monetary Fund (IMF), Malik stated that Pakistan had met all prerequisites for a staff-level agreement and is optimistic about the materialization of the IMF program.

In conclusion, given the country’s current financial strains, the minister strongly disapproved of the special allowances and privileges granted to the Senate chairman. He pledged to use his position as a senator to challenge these special privileges.