Tag: karachi port

  • China and UAE expected to inject $500 million into Pakistan’s LNG projects 

    China and UAE expected to inject $500 million into Pakistan’s LNG projects 

    China and the United Arab Emirates (UAE) are considering investing $500 million in two liquefied natural gas (LNG) projects in Pakistan.  

    The China National Chemical Engineering Company (CNCEC) and LNGFlex, a subsidiary of Bison in the UAE, are expected to contribute to the development of LNG terminals and supply infrastructure. 

    Sources reveal that these companies have outlined plans for both virtual and non-virtual projects. The aim is to establish a virtual LNG project, which includes a receiving terminal and storage facility at Karachi port. 

    Earlier, Pakistan and the UAE inked several multi-billion-dollar Memoranda of Understanding (MoUs) to enhance economic and strategic cooperation between the two nations. 

    It’s worth noting that in June, Bloomberg reported that Pakistan faced challenges in securing liquefied natural gas (LNG) from the spot market.  

    The attempt to purchase six shipments for October to December through Pakistan LNG Limited (PLL) was unsuccessful, as no suppliers responded to the offer.  

    Overseas banks were reportedly unwilling to accept letters of credit from Pakistani counterparts, contributing to suppliers’ reluctance to provide LNG cargoes. 

    The failure to secure gas may worsen energy shortages in Pakistan, leading to more frequent blackouts and limiting fuel supply to industrial consumers. 

  • Cabinet Committee grants approval for UAE to build cargo terminal at Karachi Port

    Cabinet Committee grants approval for UAE to build cargo terminal at Karachi Port

    The Cabinet Committee on Inter-Governmental Commercial Transactions has granted approval for the proposed collaboration between Pakistan and the United Arab Emirates (UAE) aimed at establishing a bulk and general cargo terminal at East Wharf, Karachi Port.

    Before the agreement is finalised, it will undergo ratification by the federal cabinet, following which the governments of Pakistan and UAE will officially sign it. The draft agreement, which has been endorsed by the cabinet committee, encompasses various essential aspects.

    These include the terms and conditions of the agreement, the cost estimation for the terminal’s reconstruction, the terminal’s expected lifespan, its maximum cargo handling capacity, the dimensions of the quality wall, royalty details, land rent per square meter in the bonded areas, storage charges, dock labour charges, upfront payment arrangements (adjustable and non-adjustable), as well as the quantum and type of investment involved.

    The Cabinet Committee on Inter-Governmental Commercial Transactions meeting, where the draft agreement received approval, was chaired by Finance Minister Senator Mohammad Ishaq Dar on Monday.

    The committee’s decision was based on a summary presented by the Ministry of Maritime Affairs, which outlined the proposed government-to-government agreement between UAE and Pakistan for fostering cooperation in the development of the bulk and general cargo terminal at Karachi Port’s East Wharf. The agreement operates under the framework of the Inter-Governmental Commercial Transaction Act 2022, as indicated by the Ministry of Finance.

  • Pakistan receives second shipment of discounted Russian crude oil

    Pakistan receives second shipment of discounted Russian crude oil

    On Tuesday, the second shipment of discounted Russian crude oil, comprising a total of 55,000 tonnes, reached the Karachi port.

    The vessel carrying Urals oil, named ‘Clyde Noble’, had been en route to the port of Karachi in the Arabian Sea, according to earlier reports from reliable sources. Once the ship’s berthing plan is finalized, it will be docked at the oil pier.

    An insider from the oil industry had previously informed The News that the vessel was expected to reach Karachi Port by Tuesday. Originally scheduled to arrive on June 20, the second cargo faced a one-week delay due to limited storage space in the tanks of Pakistan Refinery Limited (PRL).

    The PRL, being the first domestic refinery to receive crude oil from Russia under the government-led deal, encountered logistical challenges.

    Pakistan had received its initial shipment of Russian crude oil on June 12 when a tanker carrying 45,000 tonnes of crude oil docked at the Karachi port. The government had placed an order of 100,000 tonnes of Russian crude oil in April of this year after months of negotiations with Moscow to finalize the terms and conditions of the agreement.

    As per the terms of the deal, Russia dispatched the first oil tanker carrying 100,000 metric tonnes of crude, which arrived at the Omani port earlier this month.

    However, due to the Pakistani port’s limitations in handling heavy ships carrying over 50,000 tonnes of oil cargo, it was decided to transport the crude to Pakistan using smaller vessels.

    It is noteworthy that the vessel, loaded with Ural crude on April 21 at a Russian port, faced a 10-day delay due to technical issues. Subsequently, it reached Egypt’s Suez Canal on May 17, where it endured a 12-day wait in a lengthy queue before crossing the canal.

    Currently, Pakistan imports 70 per cent of its crude oil, which is refined by PRL, National Refinery Limited, Pak Arab Refinery Limited, and Byco Petroleum. The remaining 30 per cent is domestically produced and refined by Attock Refinery Limited.

    To meet the demand for petroleum products, PRL is presently in the process of refining the Russian crude oil, blending it with Arabian crude that arrived a few days ago following a PRL order.

  • Finance Minister Dar assures no global sanctions for Russian oil purchase

    Finance Minister Dar assures no global sanctions for Russian oil purchase

    Pakistan’s Finance Minister, Senator Ishaq Dar, has provided reassurances that Pakistan will not be subjected to global sanctions for its purchase of Russian oil. Dar made these remarks during a briefing to the Senate’s Standing Committee on Finance, highlighting that both India and China continue to purchase crude oil from Russia despite existing global sanctions.

    Dar emphasised that significant progress had been made in November of the previous year regarding the procurement of Russian oil, and the government had diligently completed all necessary preparations before proceeding with the purchase. He further explained that Pakistan adhered to an approved procedure established by a committee comprising G7 countries for oil production from Russia.

    Dar acknowledged the instrumental role played by Foreign Minister Bilawal Bhutto Zardari in consulting and obtaining approval from the G7 countries prior to the procurement of Russian oil.

    In terms of payment, the finance minister disclosed that the Chinese currency Yuan would be used for settling the payment for the Russian crude oil. He expressed Russia’s satisfaction with this arrangement, noting that it would not only reduce shipping costs but also lead to a decline in crude oil prices.

    When questioned about border trade with Iran, Dar confirmed that the government intended to enhance such trade but clarified that petroleum products were not included in these border trade activities.

    On Sunday, Pakistan successfully unloaded over 45,000 metric tons of oil from a Russian vessel that arrived at the Karachi port. Another Russian oil carrier is expected to reach the port of Karachi in the coming week.

    It is worth mentioning that earlier this week, the first ship carrying Russian oil had already docked at the Karachi port.

    During a press briefing on June 15, US State Department spokesperson Matthew Miller highlighted that every country has the right to make decisions based on its energy requirements. He further acknowledged that Russian oil was being sold at significantly lower prices compared to global market rates.

    Miller attributed this decrease in price to the limitations imposed by the US and its allies, resulting in Russia losing an estimated $100 billion in revenue that could have been used in the Ukraine conflict. Miller clarified that the US had not imposed any restrictions on Russian oil exports.

  • Export industry is one of the highest priorities of govt: Ishaq Dar

    Export industry is one of the highest priorities of govt: Ishaq Dar

    Federal Minister for Finance and Revenue Ishaq Dar on Monday said that the government will make it easier for all exporters to import the raw materials, components, and accessories they need to meet their demands, including five previously zero-rated export-oriented sectors.

    “Export industry is one of the highest priority of our government,” the minister wrote on Twitter.

    “Five (previously) zero-rated export-oriented sectors and all other exporters will be given complete facilitation for import of raw material, parts, and accessories to meet their export requirements,” Dar added.

    The announcement comes as the country battles a dire foreign exchange crisis and industries, notably exporters, struggle to get their Letters of Credit (LC) issued

    At Karachi port, thousands of containers containing raw materials, food items, and medical supplies are stranded due to a shortage of dollars.

    Banks are refusing to grant fresh letters of credit for importers due to a shortage of needed dollars, which is undermining an economy already under pressure from high inflation and weak GDP.

  • Bentley Mulsanne stolen from London, recovered in DHA Karachi with a Sindh license plate

    Bentley Mulsanne stolen from London, recovered in DHA Karachi with a Sindh license plate

    A Bentley Mulsanne that was stolen from London, United Kingdom (UK), has been recovered by the Collectorate of Customs Enforcement (CCE) in Defence Housing Authority (DHA) Karachi.

    According to Geo, the British intelligence agency reportedly informed the CCE, Karachi, through reliable sources that a grey Bentley Mulsanne, V8 Automatic, with the VIN numbers SCBBA63Y7FC001375 and CKB304693, which was stolen from London, was parked in DHA, Karachi.

    The conduct of the nation’s various agencies has been under intense scrutiny following an extraordinary incident in which a stolen car from London was found in Karachi thanks to information provided by the UK intelligence agency.

    To check the accuracy of the report, the CCE team has mounted strict monitoring at the mentioned place. The car that was discovered parked within the house’s car porch was found during a physical search by the department.

    When the light grey fabric was removed, a grey Bentley Mulsanne with the Pakistani registration number BRS-279(2020 Sindh) was discovered at the back of the vehicle, and a white handcrafted number plate with the letters BRS-279 was discovered at the front.

    The vehicle’s chassis number, however, matched the information provided about the stolen car. As a result, the department has detained the owner and the car for additional inquiry.

    The vehicle’s owner revealed during the opening stages of the investigation that another person had sold the vehicle to him and had taken full responsibility for obtaining the necessary clearances from the relevant authorities.

    On the basis of his information, the department also detained the individual who identified himself as a broker and revealed the identity of the primary offender, who is still at large.

    The registration of such a pricey vehicle required NOC from Pakistan Customs, receipt of duty and tax payments, and selling approval from the Ministry of Foreign Affairs, according to sources in the customs department.

    Surprisingly, the Sindh Excise and Taxation department registered this stolen car without following all the legal procedures, proving that Sindh Excise officers were involved in these illegal acts.

    The case has been filed, and further investigation is being conducted to bring the guilty parties to justice.