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Govt vows to pass cheaper Russian oil benefits to people

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1 year ago

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  • 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Regarding the local refineries, Malik acknowledged their reliance on Arabian Light Crude due to outdated hydro-skimming technology.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.

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Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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14 hours ago

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

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The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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2 days ago

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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