Connect with us

Business

Pakistan shares oil import agreement with UAE authorities

Published

on

  • Once agreement is signed commercial talks would begin between PSO and UAE’s ADNOC.
  • Pakistan is seeking to import 1.5 million tonnes of motor spirit per year.
  • Agreement was forwarded as a follow up to talks held in Abu Dhabi in November.

ISLAMABAD: Pakistan has sent a draft of an inter-governmental agreement (IGA) to UAE for the import of mogas under a government-to-government mode between Pakistan State Oil (PSO) and Abu Dhabi National Oil Company (ADNOC), reported The News on Thursday.

“We have sent the IGA draft to the UAE for approval. Once it is signed, commercial talks would begin between the state entities of both the countries,” a senior official of the Energy Ministry confirmed to the publication.

As per the agreement Pakistan is seeking to import 1.5 million tonnes of motor spirit per annum, which is equivalent to 30 cargoes in a year, in the deal which is expected to last for 5-8 years.

A monthly breakdown would mean that Pakistan would import two and a half to three cargoes a month from the Gulf state.

The agreement was forwarded as a follow-up to the talks held in Abu Dhabi during the first week of November 2022. In the talks, both sides had agreed to enter into a GtG deal for the import of mogas and jet fuel.

“This would help Pakistan have sustainable availability of petroleum products in the country. More importantly, the GtG deal would also provide a monetary solace in terms of premiums in importing petrol and other products,” said the official adding they were hoping that the commercial agreement between PSO and ADNOC would be finalised soon after the IGA was inked. 

Pakistan is hoping to begin the import of petrol from January 15, 2023, under the deal.

The official explained that after the agreement is inked, both sides would initiate talks on the structure of the commercial agreement and finalise the specifications of petrol, and jet fuel.

Currently, PSO gets diesel from Kuwait Petroleum Company under a similar agreement and purchases petrol from the open market with high premiums depending upon the prices of products in the international market.

But this deal will allow PSO to get petrol from ADNOC at a negotiated price. In addition, PSO would also import jet fuel on a need basis as the country’s refineries cater to jet fuel needs most of the time.

Business

“Ready to work with Pakistan’s new government,” the IMF said.

Published

on

By

In response to the former premier’s request, IMF Director of Communications Julie Kozak stated, “I’m not going to comment on ongoing political developments,” during a news conference.

She continued by saying that they “look forward to working on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens with the new government.”

In addition to stating that the plan is “supporting the authority’s efforts to stabilise the economy and to, of course, with a strong focus on protecting the most vulnerable,” Kozack said the lender increased the total disbursements under the Standby Arrangement (SBA) to $1.9 billion.

This has been accomplished by closely adhering to budgetary constraints and safeguarding the social safety net. In order to keep foreign exchange reserves growing and rein in inflation, a strict monetary policy stance has been maintained, the speaker stated.

The PTI founding chairman decided to write a letter to the international lender, asking it to demand an audit of the election held on February 8 before it proceeds with discussions with Islamabad for a new loan programme. This move prompted the IMF to release its statement.

In response to the former premier’s request, IMF Director of Communications Julie Kozak stated, “I’m not going to comment on ongoing political developments,” during a news conference.

She continued by saying that they “look forward to working on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens with the new government.”

In addition to stating that the plan is “supporting the authority’s efforts to stabilise the economy and to, of course, with a strong focus on protecting the most vulnerable,” Kozack said the lender increased the total disbursements under the Standby Arrangement (SBA) to $1.9 billion.

This has been accomplished by closely adhering to budgetary constraints and safeguarding the social safety net. In order to keep foreign exchange reserves growing and rein in inflation, a strict monetary policy stance has been maintained, the speaker stated.

The PTI founding chairman decided to write a letter to the international lender, asking it to demand an audit of the election held on February 8 before it proceeds with discussions with Islamabad for a new loan programme. This move prompted the IMF to release its statement.

Continue Reading

Business

In a new IMF agreement, Pakistan would “raise” the FBR tax-to-GDP ratio to 15%.

Published

on

By

The state bank reserves will be maintained at a level equivalent to three months’ worth of import bills, according to sources in the Finance Ministry.

According to sources, the ministry has also set a goal to maintain the primary balance surplus and reduce the current account deficit.

The ministry insisted that once the existing agreement expires, a new one would be negotiated with the IMF, and that the IMF will also be guaranteed that the requirements will be implemented prior to the agreement being finalised.

The founder of Pakistan Tehreek-e-Insaf (PTI) demanded that an audit of the election results be conducted before the International Monetary Fund (IMF) approved any additional loans for Islamabad. However, the IMF showed earlier today that it was eager to cooperate with the new administration in Pakistan by disregarding the demand.

According to Bloomberg News yesterday, Pakistan is to apply for a fresh $6 billion loan from the International Monetary Fund to assist the next government in paying off billions of dollars in debt that comes due this year.

According to the article, the nation would attempt to negotiate an Extended Fund Facility with the IMF, and it was anticipated that discussions with the international lender would begin in March or April.

Thanks to a short-term IMF bailout, Pakistan avoided defaulting last summer. However, the plan expires next month, and the next administration will need to negotiate a long-term deal to keep the $350 billion economy steady.

The IMF forced the South Asian country to enact a number of reforms prior to the rescue, including raising its benchmark interest rate, changing its budget, and raising the cost of natural gas and electricity.

According to a fund spokeswoman, the IMF staff is still in communication with authorities on the necessary longer-term reform initiatives. The fund is also prepared to assist the post-election government in addressing Pakistan’s ongoing issues by means of a new arrangement, should that request be made.

Continue Reading

Business

39% increase in IT exports in January: Dr. Umar Saif

Published

on

By

According to Dr. Umar Saif, the acting minister for information technology and telecommunication, IT exports increased by 39.4% to $265 million in January of this year from $190 million in the same month the previous fiscal year.

The IT sector in Pakistan is expanding and breaking records. The minister wrote on X that “IT exports in January are up by 39.4% to $265 million, compared to $190 million in the same month in 2023.”

The minister also revealed that IT exports to the United States over the first seven months of the current fiscal year (July–January) were $1.7 billion, up 13 percent from $1.5 billion in the same time previous year.

Continue Reading

Trending