Pakistan says difficult to outbid European nations for LNG procurement amid war in Ukraine
Pakistan says difficult to outbid European nations for LNG procurement amid war in Ukraine/node/2111001/pakistan
Pakistan says difficult to outbid European nations for LNG procurement amid war in Ukraine
The LNG (liquefied natural gas) tanker Flex Volunteer, sailing under the flag of the Marshall Islands, near Saint-Nazaire, western France, on April 12, 2022. (AFP)
ISLAMABAD: Pakistan’s state minister for petroleum Musadik Masood Malik admitted on Saturday his country was finding it difficult to procure liquefied natural gas (LNG) from international market since it could not outbid rich European nations that stopped their energy imports from Russia earlier this year.
President Vladimir Putin ordered the armed forces of his country to invade Ukraine in February, causing massive disruption to the global energy market. While European nations hit Moscow with painful economic sanctions, they turned to other oil and gas producers to meet their energy demand.
Speaking at a two-day conference organized by the Center of Excellence in Journalism at the Institute of Business Administration in Karachi, Malik said Pakistan had carried out two rounds of tenders for LNG but failed to find a bidder.
“Since supply from Russia is suspended due to its war with Ukraine, European countries are also buying gas from everywhere it is available,” he was quoted by Dawn newspaper as saying.
Malik added the cost of LNG, which was $4 about two-and-a-half years ago, had exceeded to $40 due to the war.
He told the audience that Pakistan did not have enough energy and could not afford expensive gas.
“So, what we are doing is arranging alternates,” he added. “The recent increase in production, imports of coal and furnace oil is part of the same strategy.”
The minister disclosed that Pakistan had imported five ships of furnace oil within a month while acquiring coal in large quantities to run its energy production units. He hoped the increased imports of furnace oil and coal would provide some relief to the masses after July 15 when the monsoon season is also expected to improve water flows for hydel power generation.
Malik said these were tough decisions, though he added the government could not “sit idle and keep watching as the country turns into Sri Lanka.”
KARACHI: The Pakistani finance minister on Wednesday convened an emergency meeting “to review market resilience and financial security,” the ministry said, as stocks plunged about six percent at the open after India carried out strikes on Pakistan and Azad Kashmir.
The market reaction followed India targeting six locations inside Pakistan, in which the Pakistan army said at least 26 civilians were killed. Islamabad said it had responded by targeting Indian fighter jets and striking military posts along the Line of Control that divides the two sides of the disputed Kashmir region.
The benchmark KSE-100 Index dropped 6,560 points to 107,007 as trading began at 9:32 AM at the country’s equity market in Karachi, according to the Pakistan Stock Exchange (PSX) website.
“Today’s was the heaviest daily loss since April 7 when the index fell 7.3 percent,” Muhammad Waqas Ghani, head of research at JS Global Capital, told Arab News.
The stock index opened down 5.8 percent but is “now recovering,” Mohammed Sohail, chief executive officer at Topline Securities, said in a note to clients.
The finance ministry meanwhile said an emergency meeting had been called “to assess the current financial landscape in light of escalating regional tensions.”
“The Finance Minister reiterated that Pakistan’s financial system remains stable and secure, and that all relevant authorities are working in close coordination to uphold national economic integrity in the face of emerging challenges,” a statement said.
The Securities and Exchange Commission of Pakistan (SECP) also “assured market stability,” a statement by the regulator said.
“SHARP REBOUND”
The latest standoff comes as Pakistan’s government treads a tricky path to economic recovery, bolstered by a $7 billion IMF loan.
The South Asian nation’s stock index had surged more than 80 percent last year, mainly due to IMF-backed economic stability, with interest rates halving to 11 percent since June and inflation easing to a record 0.3 percent in April.
However, equities began declining after April 22, the day 26 tourists were killed in Pahalgam in Indian-administered Kashmir. The attack triggered the latest standoff between the longstanding enemies, with New Delhi blaming Islamabad of involvement, a charge Pakistan denied.
The renewed geopolitical tension caused the market to fall about 10 percent by Wednesday morning, though it began recovering and pared losses to 1.2 percent by 10:45 AM, reflecting the strong macroeconomic fundamentals of the country’s stabilizing economy.
“The sharp rebound of 4,500 points reflects underlying market confidence, driven by strong economic fundamentals,” said Ghani.
Investors, he added, were also encouraged by a statement from US Secretary of State Marco Rubio expressing hope that the situation would de-escalate “quickly.”
Analyst Amreen Soorani, head of research at Al Meezan Investment Management, said Pakistan’s past escalations with archrival India had “historically presented headwinds for equities.”
She said while Pakistan’s economy carried higher sensitivity to prolonged conflict, nuclear deterrence between the neighboring countries remained a critical factor limiting major escalation.
Similar events in the past, Soorani said, suggested a pattern of eventual de-escalation, helping restore investor confidence.
“Given prevailing attractive valuations and the anticipated positive impact of IMF developments on investor sentiment, positive sentiments may remain intact in the longer term,” she added.
Topline Securities CEO Sohail said stocks were rebounding as investors expected “no major escalation” going forward.
“Investors seem optimistic about the upcoming IMF board meeting which will decide on the loan tranche for Pakistan,” he added.
The IMF’s executive board is scheduled to meet on May 9 to approve the release of about a $1 billion tranche for cash-strapped Pakistan as it seeks to boost its dwindling foreign exchange reserves.
KARACHI: The Pakistan Cricket Board (PCB) on Wednesday confirmed that the HBL Pakistan Super League (PSL) will proceed as scheduled, with Islamabad United set to face Quetta Gladiators later tonight in Rawalpindi, despite rising military tensions with neighboring India.
The match is set to begin at 8 PM local time at the Rawalpindi Cricket Stadium, marking the league’s return to the city for four consecutive fixtures from May 7 to 10.
“HBL Pakistan Super League X will continue as planned with Islamabad United set to take on Quetta Gladiators later today at the Rawalpindi Cricket Stadium,” reads a handout issued by PCB.
The final group match, the PCB added, will be played in Multan on May 11, followed by the Eliminator in Rawalpindi on May 13. The playoffs and final are scheduled for May 14, 16 and 18 at Lahore’s Qaddafi Stadium.
The confirmation comes hours after Pakistan’s military said Indian missile strikes had killed at least 26 civilians and wounded 46 in cross-border attacks on six locations inside Pakistani territory.
India’s defense ministry said it had launched “Operation Sindoor,” targeting what it claimed were “militant infrastructure” linked to a recent deadly assault on tourists in Indian-administered Kashmir.
New Delhi has blamed the attack on Pakistan, a charge Islamabad has repeatedly denied.
Responding to the Indian attack, Pakistan’s Information Minister Attaullah Tarar said the country’s air force had downed five Indian fighter jets in the early hours of Wednesday.
The PSL, which features several foreign players, is widely credited with reviving international cricket in Pakistan after a decade-long suspension following the 2009 militant attack on the Sri Lankan team in Lahore.
The HBL PSL, now in its 10th season, is considered Pakistan’s premier T20 franchise competition and a symbol of the country’s sporting resilience.
Since its full return to home soil in 2020, it has helped Pakistan rebuild its reputation as a safe destination for international cricket.
ISLAMABAD: Pakistan and the United States (US) have reaffirmed their commitment to deepening economic ties, the Pakistani commerce ministry said on Tuesday, following a series of high-level meetings in Islamabad aimed at enhancing bilateral trade and investment.
The statement came after a delegation of the US Chamber of Commerce and the US-Pakistan Business Council (USPBC), led by Charles Freeman, met with Commerce Minister Jam Kamal Khan in Islamabad. The delegation was accompanied by US Charge d’Affaires Natalie A. Baker.
Khan welcomed the visit and described it as a step forward in strengthening economic relations between the two nations, acknowledging the USPBC’s pivotal role over the past two decades in fostering commercial engagement between the two sides.
“Pakistan values the United States as its largest export destination and deeply appreciates this strategic trade relationship,” he said. “Efforts are underway to address trade deficit and market access issues through a comprehensive strategy involving relevant stakeholders.”
He noted the recent 90-day pause in reciprocal tariffs, announced last month, between the two countries offered a significant opportunity for “constructive” dialogue and the formulation of a sustainable, mutually beneficial trade roadmap.
US President Donald 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.
US goods exports to Pakistan were $2.1 billion in 2024, up 4.4 percent ($90.9 million) from 2023, according to US government data. The import of goods from Pakistan to the US totaled $5.1 billion in 2024, up 4.9 percent ($238.7 million) from 2023.
During the meeting, US Charge d’Affaires Baker praised positive developments in bilateral agricultural trade, particularly the resumption of US soybean exports to Pakistan.
“Enhanced cooperation in the cotton sector is also a key area for mutual growth, given Pakistan’s textile industry’s demand for high-quality cotton and the US’s position to meet this demand,” she was quoted as saying.
Kamal assured the US delegation of Pakistan’s commitment to maintaining a predictable, transparent and fair trade environment for American businesses and investors. He reiterated that his government remains dedicated to fostering a strong working relationship with the US on both bilateral and multilateral platforms.
Freeman, the US Chamber of Commerce’s senior vice president, appreciated the Pakistani government’s commitment to facilitating businesses and said they looked forward to continued dialogue and technical cooperation to support economic growth and job creation in both countries.
The visit of the US delegation came at a time when Pakistan is striving to boost trade and foreign investment as it slowly recovers from a prolonged economic meltdown. The South Asian country has pursued aggressive economic diplomacy in recent years, signing several agreements and memoranda of understanding with countries in Central Asia and the Middle East and beyond.
The US delegates later held a meeting with Prime Minister Shehbaz Sharif, who appreciated the USPBC’s role in advancing economic ties between Pakistan and the US.
“My government looks forward to a constructive partnership with the US government, businesses, investors and industrialists to increase bilateral trade and investment in goods and services, especially in the IT sector,” Sharif said, adding that Pakistan’s market was ripe for investment.
“The government of Pakistan is in touch with the US administration on the tariff issue and I hope that a mutually beneficial solution will be found.”
The delegates expressed their “keen interest” in investing in various Pakistani sectors and to benefit from existing opportunities, Sharif’s office said.
KARACHI: Pakistan International Airlines (PIA) has canceled all flights for the next 12 hours, a spokesperson announced on Wednesday, as tensions escalated sharply with neighboring India following missile strikes.
The move comes as Pakistan’s military said at least 26 civilians had been killed and 46 injured in Indian attacks on six locations inside Pakistani territory.
India said its forces had launched “Operation Sindoor,” targeting sites it claimed were linked to a recent attack on tourists in Indian-administered Kashmir which it blamed on Pakistan despite Islamabad’s repeated denials.
Pakistan’s information minister, Attaullah Tarar, said the Pakistani military had downed five Indian jets in retaliation for the late-night strikes.
“PIA has currently canceled flights for next 12 hours. Passengers are requested to keep in contact with PIA,” Abdullah Khan, the PIA spokesperson, told Arab News.
He added that flights already airborne had been diverted to Karachi while all ground operations were put on hold.
Despite the cancelations, a source within the Pakistan Airport Authority (PAA) told Arab News the country’s airspace remained open.
“The latest NOTAM cancels previous NOTAM which has closed airspace,” the source said, sharing the latest Notice to Airmen.
Meanwhile, several Asian airlines said they were rerouting or canceling flights to and from Europe because of fighting between India and Pakistan, according to Reuters.
Taiwan’s EVA Air said it would adjust its Europe-bound flights to avoid airspace affected by the conflict.
One flight from Vienna was diverted back, while a Taipei–Milan flight was rerouted to Vienna for refueling before continuing to its destination, the airline said in a statement to Reuters.
Korean Air began rerouting its Seoul Incheon-Dubai flights on Wednesday, opting for a southern route over Myanmar, Bangladesh and India instead of Pakistani airspace.
Thai Airways said flights to Europe and South Asia would be rerouted from early Wednesday morning, warning of potential delays.
Taiwan’s China Airlines also said it had activated its contingency plan and taken measures to ensure passenger and crew safety, though it did not elaborate.
-With Input from Reuters
ISLAMABAD: Pakistan military spokesperson Lt. Gen. Ahmed Sharif Chaudhry said on Wednesday Pakistan had shot down five Indian fighter jets after New Delhi launched overnight strikes in which 26 civilians were killed.
In the sharpest military escalation in more than two decades between the nuclear-armed rivals, the Indian government said it struck nine Pakistani “terrorist infrastructure” sites where a deadly attack in Indian-administered Kashmir on April 22 had been planned. The attack took place on the tourist hill station of Pahalgam in the part of Kashmir governed by India, with 26 men killed.
The Pakistani military said six locations across its territory — Ahmedpur East, Muridke, Sialkot, Shakargarh in the eastern province of Punjab and Kotli and Muzaffarabad in Azad Kashmir — were targeted. Azad Kashmir is a part of the disputed Kashmir valley that is administered by Pakistan.
In televised remarks on Wednesday morning, Chaudhry said Indian aircraft had fired from Indian airspace using long-range weapons.
“Five planes and one combat drone, which had attacked Pakistan were shot down,” he said, naming three Rafales and an MiG-29 and Su-57 each and a combat drone.
An army soldier stands guard on the rooftop of a mosque building damaged by a suspected Indian missile attack near Muzaffarabad. (AP)
He added that the engagements were done as “self defense” after the Indian aircraft attacked Pakistani territory and killed civilians, including women, children and the elderly.
Four local government sources in Indian-administered Kashmir told Reuters three fighter jets had crashed in separate areas of the Himalayan region during the night. Indian defense ministry officials have not officially confirmed the report.
Pakistan’s foreign ministry said the Chargé d’Affaires had been summoned “to receive Pakistan’s strong protest over the unprovoked Indian strikes.”
“It was conveyed that India’s blatant act of aggression constitutes a clear violation of Pakistan’s sovereignty. Such actions are in contravention of the UN Charter, international law, and established norms governing inter-state relations. Pakistan firmly rejected India’s baseless justifications for its hostile conduct,” the foreign ministry said in a statement.
“The Indian side was warned that such reckless behavior poses a serious threat to regional peace and stability.”
INDIAN MEDIA BRIEFING
In New Delhi, two Indian military spokespersons told a briefing Indian forces had attacked facilities linked to militant groups Jaish-e-Mohammed and Lashkar-e-Taiba. Pakistani officials say India only hit civilian infrastructure.
The strikes targeted “terrorist camps” that served as recruitment centers, launchpads, and indoctrination centers, and housed weapons and training facilities, the Indian spokespersons said.
Smoke rises in the main town of Poonch district on May 7, 2025. (AFP)
They said Indian forces used niche technology weapons and carefully chose warheads to avoid collateral damage to civilians and civilian infrastructure, but did not elaborate on the specifics or methods used in the strikes.
“Intelligence and monitoring of Pakistan-based terror modules showed that further attacks against India were impending, therefore, it was necessary to take pre-emptive and precautionary strikes,” Indian Foreign Secretary Vikram Misri, the top official in its external affairs ministry, told the briefing.
The joint briefing by the Indian military and foreign ministry listed past attacks in India blamed on Pakistan, with Misri saying Pakistan had not done anything to “terrorist infrastructure” after the Pahalgam attack, which triggered the latest standoff.
Pakistan had denied involvement in the attack and Prime Minister Shehbaz Sharif had offered to be part of any credible and transparent investigation.
Kashmir has been disputed between India and Pakistan since 1947. Both rule it in part and claim it in full, and have fought two of their three wars over the Himalayan region. India accuses Pakistan of arming and training militants involved in a separatist insurgency in its part of Kashmir since 1989, which Islamabad denies, saying it offers only moral and diplomatic support to the Kashmiri people in their struggle for self-determination.
The current confrontation is reminiscent of the last major military standoff between the two nations in 2019, when an Indian airstrike in the northwestern town of Balakot was followed by Pakistani retaliatory action, including the downing of an Indian fighter jet and the capture of its pilot, who was later released in a gesture of goodwill.
On Wednesday morning, the South Asian neighbors also exchanged intense shelling and heavy gunfire across much of their de facto border called the Line of Control, which divides disputed Kashmir between them.
The shelling across the frontier in Kashmir killed 10 civilians and injured 48 in the Indian part of the region, police there told media. At least six people were killed on the Pakistani side, Reuters reported, quoting officials.
