Pakistan and Russia are holding discussions on possible cooperation in the oil sector, Finance Minister Muhammad Aurangzeb said in an interview with Russian news agency RIA.

He said the energy ministries of both countries are engaged in detailed consultations, with oil exploration, production and refining identified as key areas of potential collaboration.

Aurangzeb noted that Russia has strong expertise in these fields and Pakistan views cooperation as strategically important.

According to RIA, the finance minister said a potential agreement in the oil sector could be mutually beneficial if both sides reach an understanding.

He stressed that the talks are still at an early stage and multiple aspects are under review by the respective energy ministries.

The comments follow earlier statements in November by Russian Energy Minister Sergey Tsivilev, who said discussions had taken place on the possible modernisation of an oil refinery in Pakistan with the participation of Russian companies.

The developments are being seen as part of expanding energy ties between Islamabad and Moscow.

In recent years, Pakistan has moved to broaden relations with Russia, while Moscow, facing Western sanctions after the Ukraine war, has been seeking new energy markets.

Pakistan, meanwhile, is looking for alternative sources to reduce the cost of imported fuel and began purchasing Russian crude oil in 2023.

Aurangzeb also said the two countries are considering the possibility of setting up a new steel plant in Pakistan.

He added that Islamabad is prioritising trade and investment over external aid, and growing cooperation with Russia fits into this broader economic strategy.