Exclusive: Pakistan finance minister to seek deferred payments for Qatari LNG

Pakistan’s Federal Minister for Finance and Revenue Miftah Ismail speaks throughout an interview with Reuters at his business, in Islamabad, Pakistan June 11, 2022. REUTERS/Salahuddin/File Photo

ISLAMABAD, June 11 (Reuters) – Pakistan will seek out a deferred payment plan for liquefied normal gas purchased under prolonged term bargains with Qatar, Finance Minister Miftah Ismail explained on Saturday, as Islamabad faces a harmony of payments crisis and slipping international trade reserves.

Pakistan unveiled a 2022-23 funds on Friday aimed at fiscal consolidation as it attempts to influence the International Financial Fund to restart much-necessary economic help. But the loan provider has expressed considerations around the quantities, together with its recent account deficit. go through much more

“We’ve talked about a deferred payment approach … or at least I’ve asked for this … and (Pakistan’s) petroleum minister is executing negotiations and is likely to do the talks,” Ismail advised Reuters in an interview.

As it awaits IMF resources, hard cash-strapped Pakistan is faced with slipping overseas trade reserves, adequate for significantly less than 45 days of imports, and a substantial existing account deficit – with energy purchases dominating its record import invoice.

Worldwide strength rates have risen to report levels in modern months amid reduced Russian offer and resurgent demand from customers in Asia.

Petroleum Minister Musadik Malik, who was in Doha this 7 days for talks with Qatari Minister of Condition for Electricity Affairs and Qatar Electricity main govt Saad al-Kaabi, confirmed talks but mentioned his federal government was checking out distinctive “revolutionary” pricing and provide procedures in broad-centered talks.

“Deferred payment definitely would be enormously valuable for Pakistan in the way of dollars flows, but that is not the only discussion that we are owning,” Malik claimed in an audio information, describing the conversations as “preliminary”.

Qatar’s federal government did not promptly react to a request for remark.

Term CONTRACTS

In recent many years Pakistan has increased reliance on LNG for electrical power technology, but is experiencing popular energy outrages as procurement of the chilled fuel remains unreliable and expensive.

Ismail said his authorities was also talking to Qatar about a new 5- or 10-yr LNG offer offer for 3 regular monthly cargos, as very well as an added cargo below an current offer.

Pakistan now has two extensive term supply offers with Qatar – the initial signed in 2016 for five cargoes a month, and the next in 2021, less than which Pakistan presently will get three regular shipments.

Malik explained Qatar was among the numerous suppliers Pakistan was speaking to for phrase contracts as it attempts to navigate a “incredibly hot” and “pricy” market place.

Pakistan has unsuccessfully tapped the location market place for an added July cargo, with two tenders above the past 7 days not returning valid bids.

Ismail reported two other very long-term suppliers experienced been unable to fulfil contractual provide obligations to Pakistan.

Reporting by Gibran Peshimam in Islamabad More reporting by Andrew Mills in Doha Modifying by Mike Harrison

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