Connect with us

Business

Govt vows to pass cheaper Russian oil benefits to people

Published

1 year ago

on

  • Musadik Malik refrains from disclosing commercial terms of deal.
  • Pakistan was benefiting from getting very good rates,” he says.
  • County aims to fulfil one-third of oil import requirement from Russia.

ISLAMABAD: State Minister for Petroleum Musadik Malik said the government could not disclose the contractual terms of its oil purchase from Russia, but assured that Pakistan was receiving favourable rates.

Malik, while speaking to journalists, said: “I do not have the liberty to disclose the commercial terms of our contract with Russia, this is part of our contract.”

Challenging any country to disclose its contractual terms with Russia, he questioned the need for Pakistan to be pressured into revealing its terms. However, Malik affirmed that Pakistan was benefiting from getting very good rates and these advantages would be passed on to the public.

Malik’s statement followed his announcement the previous day that the oil shipment was paid for using Chinese currency. Furthermore, he expressed the significance of the arrival of the first Russian oil cargo in 75 years, highlighting that within months, a cargo of Russian oil had reached Pakistan.

Malik shared that Pakistan has acquired 100,000 tonnes of Ural Oil, the second lightest crude available, from Russia. He stated that the samples of this crude had already been tested to assess their compatibility with Pakistani refineries.

Following the arrival of the cargo, Pakistan plans to continue importing crude oil from Russia, aiming to fulfil one-third of its oil import requirements from Russia while ensuring consumer discounts.

On Sunday, the maiden Russian oil vessel ‘Pure Point’ docked successfully at the Karachi Port Trust (KPT) carrying 45,142 metric tons of crude. The second shipment of Russian crude oil from an Omani port to Pakistan is expected to conclude within the next few days.

Regarding the local refineries, Malik acknowledged their reliance on Arabian Light Crude due to outdated hydro-skimming technology. “It is true that our refineries, which are running on old technology of hydro skimming, cannot refine 80% to 100% of Russian crude,” he said.

He disclosed that the current government has approved refinery and tight gas policies, the latter referring to natural gas reservoirs derived from reservoir rocks. Malik further revealed that advanced discussions are underway for a $10 billion investment from a Gulf Cooperation Council (GCC) country to establish a new oil refinery in Pakistan.

“The government intends to ink a $10 billion contract, before the end of its tenure so that a new oil refinery could be established in Pakistan,” he said.

Malik also mentioned that Pakistan had received a contract from Azerbaijan, which is currently under cabinet review. This contract entails the provision of distressed LNG cargo on a monthly basis, at a significantly lower price than the international market.

Pakistan has the option to accept or decline the cargo under the terms of the contract, while Azerbaijan is obligated to provide monthly distressed cargo.

Highlighting the recent diplomatic engagements, the minister reported the visit of a delegation from Turkmenistan and the signing of a joint implementation plan with them.

Malik noted that the previous four years passed without any contracts signed by the Pakistan Tehreek-e-Insaf (PTI). He further stated that Pakistan had extended invitations to European countries to establish LNG manufacturing units, positioning Pakistan as a transit route for gas transportation from Central Asian countries to Europe, thus enhancing regional energy security.

“Pakistan could become a transit route for gas transportation from Central Asian Republics to Europe to the energy security of the region,” he said.

Lastly, during his recent visit to the United States, discussions were held to facilitate the introduction of green hydrogen and ammonia in Pakistan. Malik emphasised that the fertiliser sector consumes one-third of Pakistan’s gas supply.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

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

Business

It is anticipated that 150 ships would arrive at Gwadar by the year 2045, allowing the port to handle fifty percent of all imports.

Published

3 days ago

on

By

In an effort to strengthen the port’s economic importance, the Federal Government has made the decision to direct fifty percent of all imports from the public sector to Gwadar Port.

By taking this action, which has the backing of the Special Investment Facilitation Council, the port’s financial situation is going to be improved.

The Cabinet will be presented with a summary of imports through Gwadar by the Ministry of Maritime Affairs, which will take place after Prime Minister Shehbaz Sharif’s recent trip to China.

When the next Cabinet Meeting takes place, Ahsan Iqbal, the Federal Minister for Planning, Development, and Special Initiatives, will examine the Chinese offer for the Karachi to Hyderabad Section of the ML-1 Project and bring it to the Cabinet.

Company preparations for the Shanghai International Import Expo, which will take place in November 2024, are being made by the Board of Investment and the Ministry of Commerce of Pakistan.

One of the most important aspects of the China-Pakistan Economic Corridor is the Gwadar port, which serves as a significant commerce route connecting China, the Middle East, Africa, and Europe. At this time, the Gwadar Port is able to accommodate two huge ships, and by the year 2045, it is anticipated that it would be able to handle up to 150 ships.

By developing the Gwadar Port, regional connectivity would be improved, employment will be created, and international investment will be attracted.

Continue Reading

Business

The price of gold in Pakistan has experienced a significant surge.

Published

3 days ago

on

By

Gold prices in Pakistan surged significantly on Thursday following two consecutive days of decline, with the price per tola rising by Rs2,000 to reach Rs262,100. This increase was in accordance with the downward trend in international market values.

The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price of 10 grams of 24-karat gold rose by Rs1,714, reaching Rs224,708.

Conversely, the world gold market experienced an upward trajectory. According to the APGJSA, the global price of gold surged to $2,503 per ounce following a $22 gain during the trading session.

The local market experienced a significant decline in silver prices, decreasing from Rs50 to Rs2,900 per tola after a prolonged period.

The local market’s gold prices remain subject to the ever-changing dynamics of the international market, as well as domestic considerations such as currency exchange rates and domestic demand.

Continue Reading

Business

The government has not met the deadline set by the International Monetary Fund (IMF) for the approval of a $7 billion loan.

Published

4 days ago

on

By

On Tuesday night, there were virtual talks between representatives of the Finance Ministry and the IMF delegation, with the main topics being external finance and income generation.

According to people familiar with the situation, no date has been set for the IMF’s Executive Board to approve the loan despite the ongoing negotiations.

Officials from the Finance Ministry informed the IMF mission about the government’s initiatives to get outside funding during the discussions. Updates on loan rollovers and fresh finance commitments from allies were included in this. According to sources, the IMF has received a schedule, and loan rollovers are expected to be finished by the end of next week.

The $12 billion in debt must be rolled over before the loan can be approved by the Executive Board, according to the IMF mission.

In the virtual discussions, representatives of the Federal Board of Revenue (FBR) conversed with the IMF team over the revenue deficit. The FBR must reach its revenue goals for this month, according to the IMF mission. As a result, the IMF has asked the FBR to submit a thorough strategy outlining how it will close the gap left by the shortfall and guarantee that revenue goals are reached.

Apart from the conversations on outside funding, there are rumors that the Finance Ministry is actively holding talks with commercial banks in order to obtain new funding. According to reports, negotiations are taking place with four distinct sources for commercial loans, which are anticipated to support the government’s overall financial plan.

Finance Minister Muhammad Aurangzeb disclosed on Tuesday that the IMF was in favor of introducing targeted subsidies. He said that qualifying recipients might receive these subsidies through the Benazir Income Support Programme (BISP).

In order to guarantee consistency, the minister announced that this week’s talks with chief ministers will focus on implementing a similar policy across the country. He was having a casual conversation in parliament with the journalists.

In response to queries about outside funding, Aurangzeb revealed a $2 billion deficit and said that talks to close this gap are progressing. He stressed how crucial it is to obtain business loans.

He went on, “At this point, there’s a need to secure an agreement for commercial loans, not exactly their issuance,” emphasizing that debt rollover negotiations are nearing their conclusion and doing well. The minister expected that these developments would shortly be reported to the governments of allied countries by relevant authorities.

Continue Reading

Trending