Business

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

Published

1 year ago

Farwa

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.”

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.