Pakistan is taking steps to strengthen its energy security by expanding fuel supplies from Oman. The Economic Coordination Committee (ECC) of the Cabinet is expected to consider a proposed sale and purchase agreement between Pakistan State Oil (PSO) and OQ Trading Limited of Oman.
The proposed arrangement comes as Pakistan looks to diversify its sources and routes for importing petroleum products. Concerns over regional instability and the importance of the Strait of Hormuz have encouraged Pakistan to explore alternative options for securing petrol and diesel supplies.
Increasing Fuel Imports from Oman
Pakistan and Oman have already begun increasing their energy cooperation. Discussions between PSO and Oman Trading International started in March 2026 with the objective of bringing additional petroleum cargoes to Pakistan.
During that period, Pakistan received three petrol shipments and one diesel shipment from Omani ports. Further petrol cargoes are also expected, demonstrating growing commercial cooperation between the two countries.
Pakistan Seeks Preferential Fuel Cargoes
Federal Minister for Petroleum Ali Pervaiz Malik recently met Oman’s Ambassador to Pakistan, Fahad Bin Sulaiman Bin Khalaf Alkharusi, to discuss regional energy developments and opportunities for stronger bilateral cooperation.
The petroleum minister emphasized Pakistan’s intention to diversify its energy imports and reduce its exposure to disruptions along traditional supply routes. He also requested that Oman consider providing Pakistan with preferential energy cargoes.
The Omani ambassador welcomed Pakistan’s efforts and indicated that Oman’s authorities would give the request favorable consideration.
Why Oman Is Important for Pakistan
For Pakistan, developing stronger energy links with Oman could provide another option for importing petroleum products. Diversifying suppliers can help improve the country’s ability to maintain fuel availability during periods of international market volatility or disruptions to important shipping routes.
The discussions are also not limited to petroleum imports. Pakistan and Oman are exploring opportunities in the upstream oil and gas sector, including exploration and production activities. Greater cooperation in these areas could potentially strengthen the long-term energy relationship between the two countries.
ECC to Consider Other Financial Proposals
The ECC meeting is also expected to examine several other government proposals. These include the distribution of PASSCO’s wheat stocks, funding related to PIA liabilities, and matters concerning the Roosevelt Hotel.
The committee is also scheduled to consider a proposed Rs43.849 billion National Bank of Pakistan term facility, as well as supplementary grants for the Karachi K-IV water project and security arrangements for the Reko Diq project.
Another proposal concerns the reallocation of funds under the FY2026-27 Public Sector Development Programmed (PSDP) for the automation of Pakistan Post.
Looking Ahead
The proposed PSO-OQ Trading agreement represents another step in Pakistan’s efforts to build a more diversified and resilient energy supply chain. Closer cooperation with Oman could give Pakistan an additional source of petroleum products while opening doors for broader investment in the energy sector.
However, the final outcome will depend on the ECC’s consideration and approval of the proposed arrangements. If approved and implemented effectively, the agreement could become an important component of Pakistan’s strategy to strengthen fuel security and expand its energy partnership with Oman.