Page 10 - Pakistan Link - January 20, 2023

P10 - PAKISTAN LINK - JANUARY 20, 2023 PAKISTAN

ISLAMABAD: After the G7 imposed Talks on Import of Oil and Gas Begin vessels to bring the crude from Rus-
a price cap on Russian oil in the sia. However, the traders currently
wake of invasion of Ukraine, Mos- with Visiting Russian Team take 6-7 percent premium on one
cow under its new policy “Look at cargo which helps increase the ship-
Asia” Wednesday initiated talks with ping cost of transporting the Russian
Islamabad on provision of crude oil, The Russian side also sought an crude to the destination. If the insur-
finished products, LNG and change assurance of continuity of govern- ance cover is included, then the land-
in IGA for flagship project of $3 bil- ment policies keeping in view the on- ed cost would be figured out. More
lion Pakistan Stream Gas Pipeline going political instability in Pakistan importantly, Russia wants the pay-
(PSGP) Project. and the fate of the incumbent gov- ment in rubles. And rubles are linked
“The importance of talks be- ernment if elections were held soon. with gold.”
tween the two countries can be Pakistan’s ‘powerful’ figures assured According to State Minister for
gauged by the fact that an 11-mem- the Russian side of continuity of cur- Petroleum Musadik Malik, Parco can
ber media team from Russia also ar- rent policies. process the Russian blended oil by up
rived here Wednesday night to cover “Once the crude oil volume is to 30 percent, Pakistan Refinery Lim-
the crucial talks,” senior officials, who decided, the Russian side will come ited 50 percent and the state-run Pak-
are part of the talks, told The News. up with the discount in percentage istan Refinery and Pak-Arab Refinery
Some technical experts arrived on terms. Technical experts from both 50pc and 30pc, respectively. The Cyn-
January 16, some on January 17 and sides are discussing issues like crude ergico Refinery can process the maxi-
the last batch with Shulginov Noko- The 80-member Russian delegation led by Russian energy minister Nikolay Shulginov arrived in oil volume, shipping cost, insurance mum. As for the LNG import, the pri-
lay, head of the Russian side of the Islamabad for three-day (January 18-20) talks on energy and trade - Ministry of Economic Affairs cover and mode of payment along vate companies have some LNG to be
Commission and Minister of Energy, with the IGA, which is to be signed offered to Pakistan but after 2025-26
Wednesday night. Both sides started technical talks on January 16 (Monday) as some experts for the import of crude, finished on a long-term basis. However, Rus-
The first day of talks under the trade and investments in the area of from Russia had arrived earlier. products, for LNG. However, Russia sia has expressed grave concern over
8th Inter-Governmental Commis- agriculture, energy, customs, indus- On the first-day of talks, Paki- will extend no discount on finished the changing stances by the Pakistan
sion (IGC) started with an opening try, education, science and technol- stan asked for a maximum discount products such as Mogas (motor gaso- government with regard to the struc-
statement by Dr Kazim Niaz, Sec- ogy, information and communica- of 30-40 percent in crude oil while line), diesel and other POL products,” ture of Pakistan Stream Gas Pipeline.
retary Economic Affairs, followed tion technologies, communication, the Russian side offered a discount of said senior officials. Both sides, on the request of Is-
by the statement of Israfil Ali Zade roads and postal service, railways and 10-15 percent. However, Russia hint- “Russia also has huge tankers or lamabad, amended the IGA signed in
Rauf, Deputy Director, Ministry of finance. ed at an increase in discount depend- ships to provide crude to its clients. Moscow on May 28, 2021, with Paki-
Economic Development of Russia Factually, the technical talks be- ing upon the crude volume Pakistan Pakistan National Shipping Corpora- stan having 74 percent shares and
(Deputy Chair of the Commission). tween the two sides were initiated on would purchase. tion (PSCC) may be asked to use its Russia 26 percent… - The News

Putin Views Pakistan as Pakistan's Economy Grinding to a Halt as Dollars Dry up

‘Key Partner in South Asia’ KARACHI: Thousands of containers

packed with essential food items, raw
materials and medical equipment have
been held up at Pakistan's Karachi port
as the country grapples with a desper-
ate foreign exchange crisis.
A shortage of crucial dollars has
left banks refusing to issue new let-
ters of credit for importers, hitting an
economy already squeezed by soaring
inflation and lackluster growth.
"I have been in the business for the
past 40 years and I have not witnessed
a worse time," said Abdul Majeed, an
official with the All Pakistan Customs
Agents Association.
He was speaking from an office
near Karachi port, where shipping con-
tainers are stuck waiting for payment "We've got thousands of containers stranded at the port because of the shortage of dollars," said
Maqbool Ahmed Malik, chairman of the Customs Association, adding that operations were down at
guarantees -- packed with lentils, phar-
Russian President Vladimir Putin meets with Prime Minister Shehbaz Sharif on maceuticals, diagnostic equipment and least 50 percent - Aaj News
the sidelines of the Shanghai Cooperation Organization (SCO) leaders' summit in
Samarkand, September 15, 2022 - AFP chemicals for Pakistan's manufacturing Islamabad has been pinning its paigning on -- the tough conditions
industries. hopes on an IMF deal brokered under demanded by the IMF would be politi-
LAHORE: Prime Minister Sheh- Shehbaz highlighted the impor- "We've got thousands of contain- the last Pakistani leader Imran Khan, cal suicide, but Pakistan is unlikely to
baz Sharif has received a special tance Pakistan attached to its rela- ers stranded at the port because of but the latest payment has been pend- secure fresh credit without making at
message from Russian President tions with the Russian Federation. the shortage of dollars," said Maqbool ing since September. least some cutbacks.
Vladimir Putin, who views Paki- Shehbaz recalled his meeting with Ahmed Malik, chairman of the cus- The global lender is demanding On Thursday, the United Arab
stan as Russia’s key partner in President Putin in Samarkand in toms association, adding that opera- the withdrawal of remaining subsidies Emirates agreed to roll over $2 bil-
South Asia and the Islamic world, September 2022 and said that the tions were down at least 50 percent. on petroleum products and electricity lion owed by Pakistan and provide the
reiterating his country’s keen in- meeting had reached important State Bank forex reserves this week aimed at helping the population of 220 country with an extra loan of $1 billion,
terest in deepening bilateral re- decisions to further strengthen dwindled to less than $6 billion -- the million with the cost of living. helping it to avoid immediate default.
lationship as well as increasing Pakistan-Russia relations. lowest in nearly nine years -- with ob- Prime Minister Shehbaz Sharif this Islamabad won some relief last week
trade and investment between Prime Minister Shehbaz also ligations of more than $8 billion due in week urged the IMF to give Pakistan when donors pledged over $9 billion to
the two sides. noted with satisfaction “the keen the first quarter alone. some breathing space as it tackles the help with recovery efforts after devastat-
The message was delivered desire on both the sides to upgrade The reserves are enough to pay for "nightmarish" situation. ing monsoon floods left almost a third of
by the visiting Russian Energy the bilateral cooperation in trade, around a month of imports, according Zubair Gul, a 40-year-old father of the country under water last year.
Minister Nikolay Shulginov, who investment and economic mat- to analysts. four and daily wage laborer in Karachi, But that cash, even when it does
called on the prime minister in ters”. The Russian energy minister Pakistan's economy has crumbled said it has become "hugely difficult" to arrive, will not help the current forex
Lahore on Thursday. Shulginov is reciprocated the prime minister’s alongside a simmering political crisis, live on his earnings. crisis, so Sharif continues to press allies
leading a Russian delegation for sentiments. with the rupee plummeting and infla- "I have to queue up for two or three -- including Saudi Arabia, Qatar and
the 8th Round of Pakistan-Russia During the meeting, both tion at decades-high levels, while dev- hours to purchase subsidized flour -- Beijing -- which has invested billions as
Inter-Governmental Commission sides agreed on the importance astating floods and a major shortage of the regular prices are not affordable," part of the China-Pakistan Economic
beginning in Islamabad on Friday. of the energy sector for the de- energy have piled on further pressure. he told AFP. Corridor project.
The Russian energy minister velopment of bilateral economic The South Asian nation's enor- For Shah Meer, an office worker,
conveyed that President Putin and trade relations. In this re- mous national debt –- currently $274 borrowing from relatives or using cred- Escaping the debt trap
referred to “Pakistan as Russia’s gard, “views were exchanged on billion, or nearly 90 percent of gross it cards are the only ways to get by. The forex crisis has deepened the
important partner in South Asia supplying oil and gas from Rus- domestic product -- and the endless ef- "A common man cannot afford to woes of textile manufacturers, which
and the Islamic World [and] reit- sia to Pakistan on a long-term fort to service it makes Pakistan partic- buy milk, sugar, pulses or any necessity are responsible for around 60 percent
erated Russia’s strong interest to basis”. Matters related to gas ularly vulnerable to economic shocks. you name," he said. of Pakistan's exports.
deepen the bilateral relationship”. pipelines were also reviewed… - With an election due at the end They have suffered as a result of the
Welcoming the delegation, The Express Tribune Teetering on a tightrope of the year, implementing -- or cam- (Continued on page 12)
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