India to export petro-chemical goods to Pakistan

This article was last updated on April 16, 2022

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Seeking to develop the level of economic co-operation and extend a “friendly helping hand” to its neighbor, India on Wednesday has put an offer to export petrol, diesel and other petroleum products to Pakistan. Should there be an agreement; India could even build a pipeline to carry these products.

GUARANTEE

“India arguing the application of exporting petroleum products, including diesel and petrol, to Pakistan. They have shown interest. In the next few weeks, we will organize the related details,” Petroleum and Natural Gas Minister, Jaipal Reddy, told journalists here after a meeting with his Pakistani counterpart Asim Hussain. India has told that it was ready to offer petroleum products supply to Pakistan and even build a pipeline to carry the same provided the neighboring country gave long-term off take guarantee.

Pakistan’s existing sanitization capacity meets only half its total domestic requirement. On the other hand, India now exports almost one-fourth of its 185 million-ton capacity.

FREIGHT COST

While Pakistan has allowed import of diesel from India, it still prohibited import of petrol and other petroleum products. None of the Indian refiners has, however, been able to export diesel to Pakistan as it gets the fuel at economical price from Gulf nations like Kuwait.

“By allowing India to dock petrol and petroleum products, Pakistan’s main benefit will be the savings in cargo cost since several refineries in India are at closer locations to the India-Pak border,” Mr. Reddy ha sstated. Mr. Hussain has told that the Pakistani government did not import any petroleum products on its own since the entire imports were done by the secretive players.

A Joint Working Group on petroleum and petrochemical products had recently been constituted by the two countries to go into the specific details of smooth the progress of trade in the sector which included infrastructure up gradation and augmentation of railways, customs facilitation, setting up of banking channels, etc. The first meeting of the group would happen at the earliest, Petroleum Minister Mr. Reddy has said.

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