Senior Vice President Pakistan Businesses Forum (PBF) Riaz Khattak has asked the government to hold talks with Iran for importing inexpensive oil and gas. Despite the widespread perception that Pakistan is unable to conduct business with Iran because of sanctions and trade embargoes, Riaz Khattak said, there is a sizable market for Iranian oil throughout Asia, particularly in China and India. He observed that the institutions that deal in US dollars are under US authority, and hence they will not allow US dollars to be used in dealings with Iran.

But according to Riaz Khattak, Pakistan can trade petroleum products for other goods that Iran seeks. He stated that according to the US-based Energy Information Administration (EIA), Iran was the third-largest producer of natural gas in the world in 2020 and the fifth-largest producer of crude oil in OPEC in 2021. It holds some of the highest quantities of proven oil and natural gas reserves and was the second-largest holder of natural gas reserves in the world as of 2021. 

By the end of 2021, Iran owned 12% of the global and 24% of the Middle Eastern oil reserves, he said. Despite possessing significant reserves, Iran's crude oil output has declined since 2017 as a result of underinvestment and international sanctions that have had a long-term impact on the oil industry, he added. If sanctions are repealed, Iran's crude oil production may resume at its maximum rate, which is estimated by the EIA to be 3.7 million barrels per day.

Credit : Independent News Pakistan-WealthPk