India offers to set up pipeline to Wagah for oil exports to Pakistan.

ISLAMABAD India and Pakistan opened talks on Tuesday on Islamabad importing oil from its eastern neighbour in a bid to ease a crippling energy crisis, an official said.

India has offered to build a pipeline to the Wagah land border and supply 50 million tonnes of petroleum, oil and lubricant products a year to meet Pakistan’s requirement.

The offer was made during talks on Monday between a visiting Indian delegation led by P Kalyanasundaram, Director (international cooperation) in the Petroleum Ministry, and a Pakistani team headed by Joint Secretary Shabbir Ahmed of the petroleum ministry.

The Indian team also met Petroleum Minister Asim Hussain, who said Pakistan is interested in importing furnace oil and diesel.

India has offered to export petroleum products to Pakistan to help it overcome an energy crisis which cripples the country’s industry and leaves millions of people suffering during the hot summers and chilly winters.

“India has surplus petroleum products and wants to export it to Pakistan. If we can save some money by buying it from India, we will buy it from them,” a senior official at Pakistan’s petroleum and natural resources ministry said.

“We discussed how to import products from India. We would like to get diesel in Karachi and furnace oil through the Wagah border. We are very interested in getting furnace oil in Punjab for the power plants,” he said.  “We will discuss the issues related to quantity and price in a second session of talks scheduled in New Delhi in the first week of July and then cabinet will make a final decision on the proposals,” he said.

Pakistan’s annual requirement for petroleum products is around 80 million tonnes. The country imports 85 per cent of its needs, the official said.

Last year India exported goods worth $2.33 billion to Pakistan, while its imports from its neighbour were worth $330 million.

Efforts are being made to boost Indian-Pakistan trade since Pakistan decided to grant India “Most Favoured Nation (MFN)” status by the end of the year.

Source : omantribune.com