Pakistan Explores Iranian Oil Imports Amid Easing US Sanctions

Pakistan is actively engaging with Iranian authorities to explore energy cooperation, including the potential import of crude oil, following the easing of US sanctions on Iran, according to Federal Petroleum Minister Ali Pervaiz Malik.

The development comes as Washington granted Iran a 60-day window to export crude oil and petrochemical products, sparking debate on whether Pakistan could secure cheaper fuel. However, Minister Malik clarified that affordability would be Pakistan’s main priority. “If locally produced gas costs around $6 and imported gas around $10, we will not purchase Iranian gas if it costs even more,” he stated.

The minister also addressed the long-stalled Iran-Pakistan (IP) Gas Pipeline, noting that while the dispute is before the Paris Court of Arbitration, both countries should resolve the matter through negotiations. The pipeline project has been largely dormant since 2013, as Pakistan did not build its 780-kilometre section due to sanctions and funding issues, leading Iran to seek international arbitration in 2024.

According to the Pakistan Oil Report for FY2025, the country remains heavily reliant on fuel imports, consuming around seven million tonnes of petrol and diesel annually. While domestic refineries produce nearly five million tonnes of diesel, almost five million tonnes of petrol are imported each year.

Pakistan News will update this story as more confirmed details become available.