Muscat – Pakistan’s apex economic decision-making body on Monday approved a proposal to finalise a sale and purchase agreement between Pakistan State Oil (PSO) and Oman’s OQ Trading, aimed at deepening bilateral cooperation in the energy sector.

The Economic Coordination Committee (ECC) of the Pakistani Cabinet approved the proposal under an existing Inter-Governmental Agreement (IGA) between the governments of Pakistan and Oman.

‘The ECC considered and approved the summary submitted by the Petroleum Division with the proposal to approve a Sale Purchase Agreement (SPA) in pursuance of the Inter-Governmental Agreement (IGA) earlier signed between the Government of Pakistan and the Sultanate of Oman,’ Pakistan’s Ministry of Finance said in a statement.

‘The SPA aims to promote and develop cooperation between OQ Trading and PSO in the field of energy,’ it added.

The ECC’s approval authorises PSO and OQ Trading to formally conclude a long-term, government-backed SPA for the preferential sale and purchase of the complete range of petroleum products, according to a press statement released by the Embassy of Pakistan in Muscat.

‘This structured arrangement replaces fragmented spot procurement with a predictable, secure and strategically anchored supply mechanism between the two countries. The decision constitutes a major policy advancement for Pakistan, significantly reinforcing national energy security by ensuring reliable, uninterrupted and cost-efficient access to essential fuels,’ the embassy said.

It said the development also marks a substantial elevation in Pakistan-Oman economic cooperation, strengthening commercial ties and establishing a durable framework for future collaboration in hydrocarbons, LNG and emerging energy sectors.

‘The Government of Pakistan affirms that this milestone agreement will serve as a foundational pillar for long-term, mutually beneficial economic engagement with the Sultanate of Oman and reflects the shared commitment of both governments to deepening strategic cooperation,’ the statement added.

Pakistan State Oil is a leading state-owned energy company involved in the procurement, storage and marketing of petroleum and related products.

OQ Trading is the international energy and commodity trading arm of the Government of Oman, with a remit to source, transport, trade and market qualifying commodity products in the global marketplace.