Announcement comes after Pakistan unveiled annual budget aimed at fiscal consolidation as it seeks restoration of IMF\u2019s support
\nISLAMABAD
\nPakistan will seek a deferred payment plan for liquefied natural gas bought under long-term deals with Qatar, Finance Minister Miftah Ismail said on Saturday, as Islamabad faces a balance of payments crisis and falling foreign exchange reserves.
\nPakistan unveiled a 2022-23 budget on Friday aimed at fiscal consolidation as it tries to convince the International Monetary Fund to restart much-needed financial support. But the lender has expressed concerns over the numbers, including its current account deficit.
\n\u201cWe\u2019ve talked about a deferred payment plan … or at least I\u2019ve requested this … and (Pakistan\u2019s) petroleum minister is doing negotiations and is going to do the talks,\u201d Ismail told Reuters in an interview.
\nAs it awaits IMF funds, cash-strapped Pakistan is faced with falling foreign exchange reserves, enough for less than 45 days of imports, and a huge current account deficit\u2013with energy purchases dominating its record import bill.
\nGlobal energy prices have risen to record levels in recent months amid reduced Russian supply and resurgent demand in Asia.
\nPetroleum Minister Musadik Malik, who was in Doha this week for talks with Qatari Minister of State for Energy Affairs and Qatar Energy chief executive Saad al-Kaabi, confirmed talks but said his government was exploring different \u201cinnovative\u201d pricing and supply strategies in broad-based talks.
\n\u201cDeferred payment obviously would be enormously beneficial for Pakistan in the way of cash flows, but that is not the only discussion that we are having,\u201d Malik said in an audio message, describing the discussions as \u201cpreliminary\u201d.
\nQatar\u2019s government did not immediately respond to a request for comment.
\nTerm contracts
\nIn recent years Pakistan has increased reliance on LNG for electricity generation, but is facing widespread power outrages as procurement of the chilled fuel remains unreliable and expensive.
\nIsmail said his government was also speaking to Qatar about a new five- or 10-year LNG supply deal for three monthly cargos, as well as an additional cargo under an existing deal.
\nPakistan already has two long term supply deals with Qatar\u2013the first signed in 2016 for five cargoes a month, and the second in 2021, under which Pakistan currently gets three monthly shipments.
\nMalik said Qatar was among multiple suppliers Pakistan was talking to for term contracts as it tries to navigate a \u201chot\u201d and \u201cpricy\u201d market.
\nPakistan has unsuccessfully tapped the spot market for an extra July cargo, with two tenders over the last week not returning valid bids.
\nIsmail said two other long-term suppliers had been unable to fulfil contractual supply obligations to Pakistan.<\/p>\n","protected":false},"excerpt":{"rendered":"
Announcement comes after Pakistan unveiled annual budget aimed at fiscal consolidation as it seeks restoration of IMF\u2019s support ISLAMABAD Pakistan will seek a deferred payment plan for liquefied natural gas bought under long-term deals with Qatar, Finance Minister Miftah Ismail said on Saturday, as Islamabad faces a balance of payments crisis and falling foreign exchange […]<\/p>\n","protected":false},"author":2,"featured_media":259116,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[2416,8479,8478],"class_list":{"0":"post-265886","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-miftah-ismail","9":"tag-payments","10":"tag-qatari-lng"},"yoast_head":"\n