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

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

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  • Pakistan’s Fx reserves dwindle as world gas rates spike
  • Islamabad seeks third very long-expression LNG source offer with Qatar
  • Pakistan requests excess month to month cargo under preceding deal

ISLAMABAD, June 11 (Reuters) – Pakistan will request a deferred payment prepare for liquefied organic gas bought under long expression bargains with Qatar, Finance Minister Miftah Ismail said on Saturday, as Islamabad faces a balance of payments disaster and falling foreign trade reserves.

Pakistan unveiled a 2022-23 spending plan on Friday aimed at fiscal consolidation as it tries to influence the International Monetary Fund to restart significantly-needed money assistance. But the loan company has expressed problems about the figures, such as its recent account deficit. read through far more

“We’ve talked about a deferred payment program … or at least I have requested this … and (Pakistan’s) petroleum minister is executing negotiations and is heading to do the talks,” Ismail explained to Reuters in an job interview.

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As it awaits IMF funds, cash-strapped Pakistan is confronted with slipping foreign exchange reserves, enough for significantly less than 45 times of imports, and a huge existing account deficit – with electricity purchases dominating its report import monthly bill.

World electricity charges have risen to report stages in latest months amid lessened Russian supply and resurgent desire in Asia.

Petroleum Minister Musadik Malik, who was in Doha this week for talks with Qatari Minister of Condition for Strength Affairs and Qatar Electricity main government Saad al-Kaabi, verified talks but mentioned his authorities was exploring diverse “ground breaking” pricing and source tactics in broad-dependent talks.

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

Qatar’s federal government did not right away react to a ask for for comment.

Time period CONTRACTS

In the latest yrs Pakistan has improved reliance on LNG for electric power era, but is facing prevalent electrical power outrages as procurement of the chilled gas continues to be unreliable and high priced.

Ismail mentioned his governing administration was also speaking to Qatar about a new five- or 10-yr LNG supply offer for three month to month cargos, as well as an extra cargo underneath an existing deal.

Pakistan now has two long time period supply offers with Qatar – the very first signed in 2016 for five cargoes a month, and the 2nd in 2021, under which Pakistan presently receives three month-to-month shipments.

Malik mentioned Qatar was among many suppliers Pakistan was chatting to for time period contracts as it attempts to navigate a “incredibly hot” and “pricy” market place.

Pakistan has unsuccessfully tapped the place sector for an excess July cargo, with two tenders in excess of the last week not returning legitimate bids.

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

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

Our Standards: The Thomson Reuters Trust Concepts.