Pakistan Refinery Limited, Air Link Communication join hands to acquire over 77% Shell Pakistan stake

Petrol station workers wearing facemasks wait for customers next to petrol pumps in Islamabad, Pakistan, on April 22, 2020. (AFP)
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Updated 17 July 2023
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Pakistan Refinery Limited, Air Link Communication join hands to acquire over 77% Shell Pakistan stake

  • Shell Petroleum Company announced its decision to exit Pakistan last month 
  • Company will sell 165.7 million shares worth about Rs19 billion ($69.4 million) 

KARACHI: The state-owned Pakistan Refinery Limited (PRL) and private firm Air Link Communication announced on Monday that they have joined hands to acquire the stakes of renowned oil and gas company, Shell Pakistan, after its parent company disclosed its decision to exit Pakistan earlier. 

Shell Pakistan Limited (SPL) announced in June that its parent company, Shell Petroleum Company (SPCo), would be exiting Pakistan with the sale of its 77.42 percent shareholding in the local business. The move came after SPL suffered losses in 2022 due to exchange rates, massive devaluation of the Pakistani rupee, and overdue receivables, and as the country faces a daunting financial crisis and economic slowdown. The company continues to bear the burden of overdue legacy receivables of PKR 5,331 million from the Pakistani government, according to its financial statements for the quarter ended on March 31, 2023. 

To support its intention to improve and simplify its portfolio, Shell Petroleum Company had initiated a sales process to sell its shareholding in Shell Pakistan Ltd, including all of SPL’s downstream businesses and SPL’s 26 percent ownership of the Pak-Arab Pipeline Company Ltd. (PAPCO). On Monday, Air Link and PRL disclosed their intention to acquire Shell Pakistan’s shares through the equities brokerage and investment banking firm, Next Capital Limited, via a notice to the Pakistan Stock Exchange. 

“We, Next Capital Limited, hereby submit a Public Announcement of Intention by Pakistan Refinery Limited and Air Link Communication Limited (collectively referred to as the “Acquirers”) to acquire 77.42 percent shares and control of Shell Pakistan Limited (’Target’),” Next Capital Limited, the offer’s manager, said on behalf of both companies. 

PRL, a subsidiary of the state-owned Pakistan State Oil (PSO), is one of five refineries operating in Pakistan. PSO owns 63.56 percent shareholding of PRL while the Pakistani government directly holds 22.47 percent shareholding of PSO, according to stock filing records. Meanwhile, Air Link Communication primarily focuses on distributing and manufacturing smartphones and their retail management. 

Shell will sell its 165.7 million shares worth an estimated Rs19 billion ($69.4 million) at a closing share price value of Rs115.25, according to calculations based on stock filings and the Pakistan Stock Exchange’s website. Shell Pakistan’s stock price increased by Rs4.75 or 4.3 percent on Monday in response to the acquisition development. 

Next Capital Limited’s chief executive officer declined to comment on the offer. 
 


Pakistan confirms four nationals killed in latest Libya boat tragedy

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Pakistan confirms four nationals killed in latest Libya boat tragedy

  • Vessel carrying foreign nationals sunk near Harawa coast in Libya’s Sirte City, says foreign office
  • Each year, thousands of Pakistanis pay large sums for illegal journeys to developed countries

ISLAMABAD: The foreign office spokesperson on Tuesday confirmed four Pakistanis have been killed in a shipwreck near the coast of eastern Libya, adding that more information is being collected about the affected nationals. 

Pakistan’s mission in Tripoli reported that a vessel carrying foreign nationals sunk near the Harawa coast in Sirte City, the foreign office spokesperson said.

The statement said a Pakistan embassy team’s visit to Sirte City confirmed 11 bodies of migrants have been recovered from the shipwreck. 

“Of these, 4 have been identified as Pakistani nationals based on their national documents,” the spokesperson said. “Two bodies remain unidentified.”

The statement identified Zahid Mehmood, Sameer Ali, Syed Ali Hussain and Asad Ali as the four victims of the shipwreck. Three of the victims hailed from Pakistan’s eastern city of Mandi Bahauddin while Mehmood belonged to Gujranwala, as per details shared by the Ministry of Foreign Affairs. 

“The Embassy in Tripoli is actively working to gather more information about the affected Pakistani nationals and is in contact with the local authorities,” the spokesperson said. 

The statement said Pakistan’s foreign affairs ministry has activated its Crisis Management Unit to monitor the situation. 

Each year, thousands of Pakistanis pay large sums for risky and illegal journeys to developed countries, hoping to find work and send money back to their families. 

Libyan authorities recovered the bodies of at least 16 Pakistani nationals who had died in a shipwreck near the coast of Libya in February this year, while nearly 10 other Pakistani citizens were missing.

The boat had capsized near the port of Marsa Dela in the northwest of Zawiya city in the Arab country. 

In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel capsized and sank in international waters off the southwestern Greek coastal town of Pylos. It was one of the deadliest boat disasters ever recorded in the Mediterranean Sea.

Pakistan has cracked down and arrested several human traffickers for arranging these dangerous, illegal sea journeys for Pakistani citizens.


Nearly 60,000 Afghans returned from Pakistan in two weeks— UN agency

Updated 40 min 50 sec ago
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Nearly 60,000 Afghans returned from Pakistan in two weeks— UN agency

  • Pakistan last month set early April deadline for some 800,000 Afghan Citizen Card holders to leave country
  • UN says nearly three million Afghans live in Pakistan who escaped to neighboring country to escape conflict

KABUL: Nearly 60,000 Afghans have been forced to leave Pakistan since the start of April, the International Organization for Migration said Tuesday, after Islamabad ramped up a campaign to deport migrants to Afghanistan.
“Between 1 and 13 April 2025, IOM recorded a sharp rise in forced returns, with nearly 60,000 individuals crossing back into Afghanistan through the Torkham and Spin Boldak border points,” the UN agency said in a statement.
“With a new wave of large-scale returns now underway from Pakistan, needs on the ground are rising rapidly — both at the border and in areas of return that are struggling to absorb large numbers of returnees,” said Mihyung Park, head of the agency’s Afghanistan mission.
Pakistan last month set an early April deadline for some 800,000 Afghans carrying Afghan Citizen Cards (ACC) issued by Pakistan authorities to leave the country.
Families with their belongings in tow have crowded key border crossings of Torkham in the north and Spin Boldak in the south, recalling scenes in 2023 when tens of thousands of Afghans fled deportation threats in Pakistan.
The UN says nearly three million Afghans live in Pakistan, many having been there for decades, after fleeing successive conflicts in their country and following the Taliban’s return to power in Kabul in 2021.


Fitch upgrades Pakistan’s credit rating to ‘B-’ on improving deficits and reforms

Updated 15 April 2025
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Fitch upgrades Pakistan’s credit rating to ‘B-’ on improving deficits and reforms

  • Upgrade reflects confidence that the country would implement structural reforms, says Fitch
  • Shehbaz Sharif says improved rating sign of world’s growing confidence in Pakistan’s economy

KARACHI: Global ratings agency Fitch on Tuesday upgraded Pakistan’s foreign currency credit rating to ‘B-’ from ‘CCC+’ citing increased confidence in the country’s progress on narrowing its budget deficits, with Prime Minister Shehbaz Sharif hailing it as a sign of the world’s growing confidence in Pakistan’s economy. 

The upgrade reflects confidence that the country would implement structural reforms, supporting its International Monetary Fund (IMF) program performance and funding availability, Fitch said.

The agency said though ongoing global trade tensions could create external pressures on Pakistan, its low dependence on exports and market financing should mitigate risks.

“Prime Minister Shehbaz Sharif welcomes the improvement in Pakistan’s economic rating by global credit rating company Fitch,” a statement by the premier’s office said. 

“The improvement in the rating of Pakistan’s economy by international institutions is a manifestation of economic development and the confidence of the world community in Pakistan’s economy,” he added. 

Sharif said his government is working “tirelessly” to further improve Pakistan’s economy. 

Pakistan’s economy had been teetering on the brink of a sovereign default ever since inflation rose to a record high of 38 percent in May 2023 and reserves started declining rapidly. 

However, Pakistan’s economy was provided breathing space thanks in part to a $7 billion bailout program from the International Monetary Fund (IMF).

In March, the IMF reached a new deal with Pakistan which could unlock $1.3 billion in cash. 

Sharif’s government has vowed to implement the financial reforms, which include increasing the country’s tax base and privatizing loss-making entities to ensure sustainable growth.


Pakistan assembly speaker to attend upcoming Gaza conference in Turkiye

Updated 15 April 2025
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Pakistan assembly speaker to attend upcoming Gaza conference in Turkiye

  • Istanbul to host pro-Palestine conference for speakers of various Muslim countries on Apr. 18
  • Pakistan parliament approved resolution on Monday condemning Israel’s bombardment of Gaza

ISLAMABAD: Pakistan’s National Assembly Speaker Ayaz Sadiq announced on Tuesday he would attend an upcoming conference on Gaza being hosted this month by Turkiye and would present his country’s stance on Israel’s military aggression. 

Turkish Parliament Speaker Numan Kurtulmus has invited his counterparts from Palestine, the United Arab Emirates (UAE) and Egypt, among other nations, to an Apr. 18 meeting of the pro-Palestine Parliamentary Speakers Group in Istanbul.

Speaking to reporters at a press conference, Sadiq said he had been invited by the Turkish parliament speaker to attend the conference. 

“So, god willing, I will go there [to the conference] and say the hard truth about Gaza,” he said. “I will present Pakistan’s stance.”

Sadiq said Pakistan is raising the issue of Gaza with foreign delegations that arrive in the country similar to the way it raises the issue of the disputed Kashmir territory. 

“It is very disappointing to see videos from there [Gaza] on what is happening there, the way people are being subjected to injustice,” he said. “It feels painful that maybe Islamic countries were not able to play our role the way we could have played it.”

Israel and Hamas agreed to a ceasefire in January that lasted eight weeks before Israel resumed the war last month. 

The initial ceasefire agreement was meant to bring the sides toward negotiating an end to the war, something Israel has resisted doing because it wants to defeat Hamas first.

Since the ceasefire fell apart last month, Israel has blocked aid from entering Gaza and its forces have also seized swaths of the coastal enclave in a bid to ratchet up pressure on Hamas to agree to a deal more aligned with Israel’s terms.

Hundreds have been killed in Gaza since the ceasefire collapsed. 

Pakistan’s parliament on Monday passed a unanimous resolution condemning Israel’s “heinous” wave of hostilities in the Palestinian territory, demanding an unconditional ceasefire in Gaza.


Pakistan mulls US oil imports to ease trade imbalance

Updated 15 April 2025
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Pakistan mulls US oil imports to ease trade imbalance

  • Pakistan said that it would send a delegation to the US in the coming weeks to negotiate new tariffs
  • Countries are scrambling to find ways to lower their US tariff burdens, including buying more US oil and gas

KARACHI: Pakistan is considering importing crude oil from the United States for the first time to offset a trade imbalance that triggered higher US tariffs, according to a government source directly involved with the proposal and a refinery executive.
Countries are scrambling to find ways to lower their US tariff burdens, including buying more US oil and gas, as President Donald Trump’s sweeping import duties rattle economies and markets.
“It is one of the products being reviewed ahead of a delegation leaving for the US to talk about tariffs,” said a government source directly involved with the proposal to the prime minister to buy more US crude.
“It is under active consideration. We are exploring opportunities and the structure to do it, but the PM has to approve it,” he said.
Trump has imposed a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries. Pakistan faces a 29 percent tariff due to a trade surplus with the US of about $3 billion, although that is subject to the 90-day pause Trump announced last week.
The refinery executive told Reuters that the idea is to buy US crude equivalent to Pakistan’s current imports of oil and refined products, or about $1 billion of oil.
The sources declined to be named as the proposal is in its preliminary stage.
Pakistan’s petroleum ministry did not immediately respond to a request for comment.
Pakistan imported 137,000 barrels per day of crude in 2024, mostly light grades from the Middle East, with Saudi Arabia and the United Arab Emirates among its top suppliers, data from analytics firm Kpler showed. Oil imports amounted to $5.1 billion in 2024, data from Pakistan’s central bank showed.
In February, Saudi Arabia, through the Saudi Fund for Development (SFD), extended a $1.2 billion financing facility to Pakistan for the import of oil products for a year. The SFD has provided approximately $6.7 billion to Islamabad for oil products since 2019.
Before Trump’s partial tariff pause last week, Pakistan said that it would send a delegation to the US in the coming weeks to negotiate new tariffs.
Several big energy importers are looking to buy more from the US to ease trade surpluses.
Last Friday, Indian state gas firm GAIL India Ltd. issued a tender to buy a 26 percent stake in a US liquefied natural gas (LNG) project and import LNG, while Japan, South Korea and Taiwan have discussed participating in an LNG project in the US state of Alaska.