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

Pakistan’s Federal Minister for Finance and Revenue Miftah Ismail speaks in the course of an job interview with Reuters at his business office, in Islamabad, Pakistan June 11, 2022. REUTERS/Salahuddin/File Photograph

ISLAMABAD, June 11 (Reuters) – Pakistan will request a deferred payment approach for liquefied purely natural gasoline purchased beneath extended time period promotions with Qatar, Finance Minister Miftah Ismail reported on Saturday, as Islamabad faces a stability of payments crisis and falling foreign exchange reserves.

Pakistan unveiled a 2022-23 funds on Friday aimed at fiscal consolidation as it tries to influence the Worldwide Financial Fund to restart much-required financial aid. But the loan company has expressed concerns above the numbers, such as its present account deficit. examine extra

“We have talked about a deferred payment prepare … or at the very least I have requested this … and (Pakistan’s) petroleum minister is doing negotiations and is going to do the talks,” Ismail told Reuters in an interview.

As it awaits IMF funds, cash-strapped Pakistan is faced with falling international trade reserves, ample for significantly less than 45 times of imports, and a substantial present account deficit – with energy buys dominating its report import invoice.

International strength charges have risen to file amounts in current months amid minimized Russian source and resurgent desire in Asia.

Petroleum Minister Musadik Malik, who was in Doha this week for talks with Qatari Minister of State for Electrical power Affairs and Qatar Strength chief govt Saad al-Kaabi, confirmed talks but said his governing administration was exploring various “modern” pricing and offer approaches in broad-based mostly talks.

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

Qatar’s federal government did not instantly respond to a ask for for comment.

Expression CONTRACTS

In new years Pakistan has enhanced reliance on LNG for electrical power technology, but is experiencing prevalent electrical power outrages as procurement of the chilled gas continues to be unreliable and high-priced.

Ismail said his federal government was also speaking to Qatar about a new five- or 10-12 months LNG source offer for three regular monthly cargos, as effectively as an additional cargo below an existing deal.

Pakistan presently has two lengthy expression supply bargains with Qatar – the initial signed in 2016 for five cargoes a month, and the 2nd in 2021, less than which Pakistan now receives a few every month shipments.

Malik reported Qatar was among numerous suppliers Pakistan was chatting to for expression contracts as it attempts to navigate a “warm” and “pricy” market.

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

Ismail claimed two other prolonged-time period suppliers experienced been unable to fulfil contractual source obligations to Pakistan.

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

Our Specifications: The Thomson Reuters Have confidence in Concepts.