ISLAMABAD: Russia on Friday agreed 'in principle' to supply crude oil and oil products to Pakistan, with technical details of the deal to be finalized by March this year, Pakistan’s Minister of State for Petroleum Dr. Musadik Malik confirmed on Friday.
Last month, days after he led a government team to Moscow, Dr. Malik said Russia would sell crude oil to Pakistan at a discounted price as well as supply discounted petrol and diesel.
Following the meetings of the eighth Pakistan-Russia Inter-Governmental Commission (IGC) in Islamabad, which ran from January 18-20, and an agreements-signing ceremony on Friday, Dr Malik told reporters that Pakistan wants to import about 30 to 35% of its total crude oil requirement from Russia.
“Parco (Pak-Arab Refinery Company) is saying that [they can use] about a third, or 30 to 35 percent of Russian origin crude [oil], the PRL (Pakistan Refinery Limited) believes that up to about 35 percent of their crude can be of Russian origin, and Byco [Petroleum] believes that their refinery can use up to 80 to 90 percent of Russian crude oil,” he said.
The minister added that the only refinery that would be unable to use Russian-origin crude oil would be Attock Petroleum as it was “designed for Pakistani crude only.”
After signing deals with Pakistan, Russia's Energy Minister Nikolay Shulginov told reporters Moscow would allow Pakistan to pay for its energy purchases “in currencies of friendly countries.”
"With our Pakistani colleagues, we held negotiations and we have discussed finances and banking cooperations, and we have agreed that payments would be made in the currencies of friendly countries," an interpreter quoted Shulginov as saying.
A joint statement later released by the Pakistan-Russia IGC added that the technical details of the deal would be finalized in March 2023.
“Both sides agreed that after consensus on the technical specifications achieved, the oil and gas trade transaction will be structured in a way it has mutual economic benefit for both countries. The process to be completed within March 2023," the statement said.
Islamabad and Moscow also agreed to strengthen energy cooperation and trade and broaden energy infrastructure investment “based on strategic and favorable commercial terms” and, to this end, said they would work on a “Comprehensive Gas Infrastructure Plan for Energy Cooperation,” to be completed in 2023.
Among the pillars of the new energy cooperation plan, the two sides reaffirmed their commitment to the long-delayed Pakistan Stream gas pipeline project, also known as the North-South gas pipeline, that is to be built in collaboration with Russian companies.
The two countries agreed in 2015 to build a 1,100 km (683 mile)-long pipeline to deliver imported liquefied natural gas (LNG) from Karachi on the Arabian Sea coast to power plants in the northeastern province of Punjab.
“Both sides agreed that Pakistan Stream Gas Pipeline Project should be considered in terms of a comprehensive infrastructure which is economically viable for sustainable gas infrastructure development ensuring affordable gas supplies,” the statement said.
Pakistan’s energy procurements from international markets constitute the largest portion of its import bill, putting immense pressure on rapidly depleting forex reserves that plummeted to $4.3 billion earlier this month. Islamabad has also faced problems in recent months in purchasing liquefied natural gas (LNG) from the global market due to spot prices that largely remain out of its reach since the invasion of Ukraine.
Local news outlets have also reported that oil supplies have remained tenuous due to issues with clearing import payments.
Russia agrees to supply crude oil to Pakistan, deal to be finalized by March
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Russia agrees to supply crude oil to Pakistan, deal to be finalized by March
- Russian minister says his country will allow Pakistan to pay for energy purchases 'in currencies of friendly countries'
- Pakistan's state minister for petroleum says country wants to import about 30 to 35 percent of crude oil from Russia
Pakistan, US discuss jointly countering Daesh, Pakistani Taliban to advance regional security
- Development comes amid renewed violence in Pakistan’s western regions that border Afghanistan, where TTP and Daesh are said to have sanctuaries
- A Pakistani military spokesman last week said a suicide attack that killed five Chinese engineers in March was planned in neighboring Afghanistan
ISLAMABAD: Pakistan and the United States (US) have discussed jointly countering Daesh, Pakistani Taliban and other militant groups to advance regional security and address transnational threats, the Pakistani foreign ministry said on Monday.
The consensus was reached during a recently held Pakistan-US Counterterrorism Dialogue in Washington DC, which was co-chaired by Pakistan’s Additional Foreign Secretary Syed Haider Shah and US State Department coordinator for counterterrorism, Elizabeth Richard.
The dialogue underscored the cooperation between Pakistan and the US in addressing challenges to regional and global security, including the Tehreek-e-Taliban Pakistan (TTP) and Daesh-Khorasan, with discussions centered on the counterterrorism landscape in the region.
“Pakistan and the United States recognize that a partnership to counter Daesh-Khorasan (Daesh-Khorasan), TTP and other terrorist organizations will advance security in the region and serve as a model of bilateral and regional cooperation to address transnational terrorism threats,” the Pakistani foreign ministry said in a statement.
“Both governments resolved to increase communication on these topics and continue collaboration to detect and deter violent extremism through whole-of-government approaches.”
The development came amid a renewed wave of violence in Pakistan’s western regions that border Afghanistan, where the TTP and Daesh are said to have their sanctuaries.
Islamabad has accused Kabul of not doing enough to tackle militant groups targeting Pakistan from across the border. Last week, a Pakistani military spokesman said a suicide bomb attack that killed five Chinese engineers in March was planned in neighboring Afghanistan, and that the bomber was also an Afghan national.
Kabul has denied allowing the use of its territory against any country and says rising violence in Pakistan is a domestic issue of Islamabad.
During the dialogue, Pakistani and US officials emphasized the importance of expanded counterterrorism collaboration and capacity-building, including exchanges of technical expertise and best practices, investigative and prosecutorial assistance, provision of border security infrastructure and training, and strengthening multilateral engagement such as in the United Nations and the Global Counterterrorism Forum, according to the Pakistani foreign ministry.
“The Counterterrorism Dialogue reaffirms Pakistan’s and the United States’ shared determination to contribute to both regional and global security and stability,” it added.
Three killed in clashes with paramilitary Rangers amid Azad Kashmir protests
- Protesters have been calling for reduction in wheat, electricity prices in Himalayan valley through days-long demonstrations
- Earlier on Monday, PM approved $83 million wheat flour and electricity subsidy and Azad Kashmir announced new prices
ISLAMABAD: At least three people were killed and scores injured as protesters clashed with paramilitary Rangers troops in Azad Kashmir, officials said on Monday, despite Pakistan’s announcement of a $83 million subsidy to reduce wheat flour and electricity prices in the region.
The development comes amid days-long protests in the disputed Himalayan valley, which is administered by Pakistan, led by the Jammu Kashmir Joint Awami Action Committee (JAAC), which is demanding subsidized wheat flour and that electricity prices be set as per the hydropower generation cost in Azad Kashmir.
On Saturday, a policeman was killed in clashes between police and demonstrators as authorities blocked a rally from moving toward Azad Kashmir’s capital, Muzaffarabad, from the region’s Poonch and Kotli districts. Weekend talks between the JAAC core committee and AJK Chief Secretary Dawood Bareach in Rawalakot ended in a stalemate and a planned march by protesters to the capital resumed on Monday.
Azad Jammu and Kashmir (AJK) Prime Minister Anwar-ul-Haq said at a press conference on Monday the regional government had notified reduced prices of wheat flour and electricity after Pakistani Premier Shehbaz Sharif okayed Rs23 billion ($83 million) in subsidies.
“Despite the issuance of notifications to reduce electricity and wheat prices, along with addressing other demands, protesters attacked a Rangers convoy, leading to an exchange of gunfire that resulted in the death of three civilians and many injuries on both sides,” Abdul Majid Khan, a spokesperson of the AJK government, told Arab News.
“The deployment of Rangers is not uncommon and their [protesters] attack on the convoy was uncalled for as it occurred after the government had already accepted their demands,” he added.
“The situation is currently under control and we are trying to bring calm as the government will not allow mischievous elements to succeed.”
Amjad Ali Khan, a member of the JAAC core committee member, said the protesters had been contemplating calling off the protest after the price reduction announcements, but the situation had “completely changed” after the killings of the three demonstrators.
“At the moment, we are not clear about the exact number of injured as many are injured, while three deaths have been confirmed,” he told Arab News.
Amjad said protesters got agitated by the heavy deployment of the paramilitary Rangers and clashes resultantly erupted in different areas of Muzaffarabad.
“Although the actual issue for which demonstrations started [protesting] has been settled, this new development has changed everything and now we will decide our new course of action tomorrow (Tuesday),” he added.
The Himalayan territory of Kashmir has been divided between India and Pakistan since their independence from Britain in 1947, with both countries ruling part of the territory, but claiming it in full. The western portion of the larger Kashmir region is administered by Pakistan as a nominally self-governing entity while India rules the southern portion of the larger Kashmir region as a union territory.
While the Indian portion has faced an ongoing insurgency for decades and multiple armed attempts by the state to quell it, the Pakistani side has remained relatively calm through the decades, though it is also highly militarized.
SUBSIDY
Earlier on Monday, AJK PM Haq announced a reduction in the prices of wheat flour and electricity in the region, thanking Pakistan PM Shehbaz Sharif for approved a Rs23 billion ($83 million) subsidy to make it possible.
“He [Sharif] issued instructions and the things that had been pending for a long time with regard to subsidy, electricity prices, resources, have been provided to Azad Kashmir,” Haq said.
The new price of electricity in the region will be Rs3 per unit for 1-100 units, Rs5 per unit for 100-300 units and Rs6 per unit for those consuming above 300 units. Commercial unit price will be Rs10 for 1-300 units, and Rs15 for above 300 units, according to Haq. A 40kg bag of wheat flour, which was previously priced at Rs3,100, will now be sold for Rs2,000.
“This would cost more than Rs23 billion to the national exchequer,” Haq added, “which the [federal] government and the prime minister of Pakistan gladly accepted.”
IMF, Pakistani officials begin formal talks in Islamabad for fresh bailout program
- The South Asian country last month completed a short-term $3 billion IMF program that helped stave off a sovereign default
- While Islamabad expects a staff-level agreement by July, both sides have refrained from commenting on the size of the program
ISLAMABAD: A team of the International Monetary Fund (IMF) and Pakistani officials on Monday began formal talks in Islamabad for a fresh, longer-term bailout program for the cash-strapped South Asian country, the Pakistani finance ministry said.
The South Asian country, which has been facing low foreign exchange reserves, currency devaluation and high inflation, last month completed a short-term $3 billion IMF program that helped stave off a sovereign default, but the incumbent government of PM Shehbaz Sharif has stressed the need for a fresh, longer-term program.
While Islamabad has said it expects a staff-level agreement by July, both Pakistani and IMF officials have refrained from commenting on the size of the program. The South Asian country is expected to seek around $7-8 billion bailout from the global lender.
On Monday, the IMF team, led by Mission Chief Nathan Porter, met Pakistan Finance Minister Muhammad Aurangzeb, central bank governor, chairman of the Federal Board of Revenue and other officials to kickstart discussions on further engagement with the lender.
“The Finance Minister welcomed the IMF team and thanked them for the successful completion of the [$3 billion] Standby Arrangement (SBA),” the Pakistani finance ministry said in a statement.
“The Finance Minister apprised the IMF team of the improvement in the macro-economic indicators over the course of the SBA and underscored the government’s commitment to continue with and expand upon the reform agenda.”
Pakistan narrowly averted a default last summer and its $350 billion economy has slightly stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high of 38 percent in May last year.
However, the South Asian country is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year, compared to negative growth last year.
Wall Street Bank Citi expects Pakistan to reach an agreement with the IMF of up to $8 billion program by end-July, and recommends going long on the country’s 2027 international bond.
“While longer-term challenges pertain, we see several positive catalysts supporting the Eurobonds,” Nikola Apostolov at Citi wrote in a note to clients.
“First, a larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Apostolov said after a team from Citi visited Pakistan and met policymakers, including Finance Minister Muhammad Aurangzeb.
Citi said it expected Pakistan’s international 2027 bond to offer a sweet spot to investors with sufficient liquidity and large upside as risks of default dissipate further.
— With additional inputs from Reuters.
Pakistan PM steps down as ruling party president, Nawaz Sharif poised to take charge
- Nawaz, who founded the Pakistan Muslim League-Nawaz in 1993, stepped down as president in 2018
- Supreme Court had ruled individuals disqualified under Articles 62/63 of constitution couldn’t head party
ISLAMABAD: Prime Minister Shehbaz Sharif has resigned as president of the ruling Pakistan Muslim League-Nawaz (PML-N), saying it was time for his elder brother and three-time former premier Nawaz Sharif to “resume his rightful place” as the party’s leader, the PML-N confirmed on Monday.
Nawaz, who founded the PML-N in 1993, stepped down as its president in 2018 after the Supreme Court (SC) ruled that an individual disqualified under Articles 62 and 63 of the constitution, which outline the rules for qualification and disqualification for parliamentarians, could not serve as the head of a political party.
Sharif was disqualified as prime minister by the Supreme Court in July 2017, which declared him “dishonest” for not disclosing a separate monthly income from a company owned by his son. The court also ordered the National Accountability Bureau (NAB) to open a criminal trial into the ownership of London flats and several other revelations about the ex-PM’s family wealth disclosed in the Panama Papers’ leaks.
A year later, following the investigations ordered by the court, Nawaz was sentenced to 10 years in prison for corrupt practices linked to his family’s purchase of the upscale London flat and subsequently to seven years in jail in a separate case for being unable to prove the source of income that had led to his ownership of a steel mill in Saudi Arabia. Nawaz has since been acquitted in both cases, which he always maintained were politically motivated.
Sharif, who is Nawaz’s younger brother, subsequently became president of the party but has always maintained it was a temporary arrangement until his brother was exonerated by the courts.
On Monday, PML-N information secretary and Senior Punjab Minister Marriyum Aurangzeb shared Sharif’s resignation on X.
“I am heartened by recent developments that have exonerated our leader with dignity, affirming his unblemished integrity and commitment to the service of our nation,” Sharif wrote.
“Therefore, it is with a deep sense of duty and reverence for our party’s principles that I tender my resignation as the president of PML-N,” he added, pledging to support the PML-N with “unwavering loyalty” under Nawaz. “The time has come for Mohammad Nawaz Sharif to resume his rightful place as the president of the PML-N.”
After being jailed in 2018, Nawaz flew to London in 2019 after a court allowed him to leave for medical treatment, on the condition he returned when fit. However, he went into exile and ran his party affairs from London, while former cricketer Imran Khan ruled as prime minister until April 2022, when he was ousted in a parliamentary vote of no confidence.
Nawaz’s younger brother, Shehbaz Sharif, subsequently became prime minister for 16 months ahead of general elections on Feb. 8 after which Sharif once again came to power in March and became premier, ruling Pakistan through a fragile coalition with smaller parties.
PIA set to resume Europe operations with flights to Paris in June-July, says CEO
- The ban was instituted after PIA air crash in May 2020 which was followed by a fake pilot license scandal
- EU’s Aviation Safety Agency says it is ‘not in a position to provide any information related to the status of PIA’
KARACHI: Pakistan International Airlines (PIA) would resume its operations in Europe with two weekly flights to Paris in June and July, the airline’s chief executive officer said on Monday, years after the national flag carrier was barred from operating flights to Europe.
PIA flights to Europe and the UK have been suspended since 2020 after the EU’s Aviation Safety Agency (EASA) revoked the national flag carrier’s authorization to fly to the bloc following a pilot license scandal that rocked the country.
The issue, which followed a plane crash in May 2020 that killed nearly a hundred people, had resulted in the grounding of 262 of Pakistan’s 860 pilots, including 141 of PIA’s 434.
“We hope we will commence our bi-weekly flights for Paris in the June or July timeframe. We are very hopeful about it,” said PIA CEO Muhammad Amir Hayat, while responding to questions during a Facebook Live.
“All our pre-operation formalities are complete, we just await final clearance, and as soon as we get it, we will start.”
Soon after the ban was imposed, Hayat said, PIA began compiling deliverables, systematically providing evidence to EASA, and telling the European agency the airline was safety-compliant.
“In March 2023, they conducted an online audit, and from my perspective, it was clear to them as they conducted the online audit that they would come for a physical audit, and they would be assured that we are at the level where they can confirm the audit,” Hayat said, adding the physical audit was conducted in November.
“In December, we received their confirmation that they accepted our deliverables. However, along with that, there are also some deliverables from the Civil Aviation Authority for which the CAA is in touch with them.”
For direct flights to the UK, Hayat said, an independent audit would have to be conducted post-Brexit.
“We have uploaded all the requirements on their portal. According to a careful estimate, after receiving clearance from EASA, the process should take two to three months,” he said. “We hope to achieve the goals of UK and European flights this year.”
Reached for confirmation, an EASA spokesperson told Arab News via email that the agency was “not in a position to provide any information related to the status of PIA.”
The spokesperson advised contacting PIA or the Pakistani CAA for information regarding any developments.
Pakistan is also set to privatize the national airline, which has been facing a financial crisis for the last several years, by June and July as part of the requirements set by the International Monetary Fund (IMF).
But no significant progress has been on that front made due to various reasons, including the suspension of the airline’s flights to Europe.
