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

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1 year ago

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  • 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.”

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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