Pakistan sets $1.5 billion limit for oil imports from India

Islamabad, May 3 (ANI): Pakistan has decided that annual oil imports from India would not be allowed to exceed 1.5 billion dollars till confidence-building measures between both nations take root.

With liquefied natural gas (LNG) among the possible importable items, Pakistan is considering only 5-10 per cent of total oil imports, which currently stands at around 14.5 billion dollars.

"The proposal is to start importing between 5-10 per cent of total oil requirement from India because we have to be cautious and careful in dealing with oil supply security and dependability issues," The Dawn.com quoted a government official, as saying.

He claimed that both nations were also exploring the possibility of LNG supplies from India that could be transported through bowsers and tankers via land route that could provide relief in supplies to bulk consumers in Punjab, particularly around Lahore and Faisalabad.

The two sides are expected to meet in May to discuss the issue further.

Pakistan's Ministry of Petroleum and Natural Resources has proposed to the government since 2008 to allow the import of petroleum products from India to diversify sources of oil imports and secure some savings on transportation charges for areas bordering India.

Pakistan is deficient in almost all petroleum products while India has a surplus refining capacity of better quality. Pakistan has also discussed the possibility of exporting Naphtha to India as Islamabad is currently exporting naphthalene at cheaper rates to other countries. (ANI)