Connect with us

Business

After IMF deal, Pakistan gets LNG shipment offer for first time in a year

Published

10 months ago

on

  • Trafigura offers two LNG shipments for January to February delivery.
  • Move comes as Pakistan’s government finances are on the mend.
  • It still isn’t clear if Pakistan will follow through with buying the fuel.

Just two days after Pakistan secured final approval to borrow $3 billion from the International Monetary Fund (IMF), the crisis-hit country’s request to buy liquefied natural gas received a response from a supplier for the first time in more than one year.

Last month, Pakistan failed to secure LNG from the spot market in its first attempt in about a year, as no supplier seems to budge to the cash-strapped nation’s offer.

Traders, on the condition of anonymity, had said that Pakistan LNG Limited’s (PLL) bid to purchase six shipments for October to December closed with no companies responding to the offer, Bloomberg had reported.

As per the latest update, Trafigura Group offered two LNG shipments for January to February delivery, said traders privy to the matter.

According to the media outlet, the move comes as Pakistan’s government finances are on the mend. The nation won final approval to borrow $3 billion from the IMF earlier this week, unlocking long-awaited lending that will help ease its dire need for cash.

The shipments that Trafigura offered are priced at roughly a 30% premium to current market prices, according to traders. Typically, spot purchases of fuel would be sold at similar levels to market prices.

Pakistan won’t award the tender until July 31, and it still isn’t clear if the country will follow through with buying the fuel. Credit risk had been a barrier stopping LNG suppliers from selling spot shipments to the nation.

IMF deposits $1.2 billion with SBP

The IMF deposited $1.2 billion into the State Bank of Pakistan’s (SBP) account yesterday, boosting the cash-strapped nation’s hope for economic stability, as it teetered on the brink of default for several months.

The global lender’s executive board approved a $3 billion Stand-By Agreement (SBA) under a nine-month programme. Pakistan reached a staff-level agreement with the lender last month, securing a short-term pact, which got more than expected funding for the crises-hit country of 230 million.

Finance Minister Ishaq Dar had said, “Our foreign exchange reserves will close at around $13-$14 billion on July 14 […] and the SBP will release the exact numbers later on.”

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Pakistan’s gold prices are still declining; see the most recent

Published

5 days ago

on

By

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Continue Reading

Business

Pakistan and the IMF begin talks for a new loan.

Published

5 days ago

on

By

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Continue Reading

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

5 days ago

on

By

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.

Continue Reading

Trending