Tag: MOUs

  • 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. 

  • Pakistan likely to receive economic assistance from friendly countries soon, says Minister Ahsan Iqbal

    Pakistan likely to receive economic assistance from friendly countries soon, says Minister Ahsan Iqbal

    On Tuesday, Minister for Planning and Development Ahsan Iqbal announced that Pakistan is likely to receive confirmation of economic assistance from friendly countries in the coming days. This confirmation is the last condition of the International Monetary Fund (IMF) and will be followed by a staff-level deal with the Fund.

    According to Iqbal, Pakistan has fulfilled nearly all conditions previously agreed upon with the IMF by the previous government. Currently, the Fund is requesting confirmation from the friendly countries providing assistance to Pakistan. Once received, the IMF deal will come on track.

    During the US-Pakistan Diaspora and Private Sector for Flood Recovery and Rehabilitation Conference, three Memoranda of Understanding (MoUs) were signed with a Pakistan-based US company and US-Pakistani diaspora entities, mobilizing $78 million. The conference was organized by the US Agency for International Development (USAID).

    When questioned about the IMF’s objection to the fuel subsidy announced by the government for the poor segment of society, Iqbal clarified that this was an internal adjustment within the fuel price and no new subsidy was being announced. He expressed hope that the IMF would have no objection to the government’s move.

    Iqbal urged the US-Pakistan Diaspora to support the government’s efforts in recovering and rehabilitating millions of flood-affected people. He appreciated the United States’ pledge of $200 million for flood relief efforts but emphasized that Pakistan needs much more for the complete rehabilitation of millions of people affected by floods.

    In his remarks, United States Ambassador Donald Blome highlighted the contributions of the US-Pakistani diaspora and private sector in building back better for flood-affected communities in Pakistan. He reaffirmed the US government’s commitment to supporting flood relief and recovery efforts, disaster resilience, and food security.

    The conference continued the momentum built at the previous conferences in Islamabad where USAID signed six MoUs mobilizing $75 million. The discussions held in those conferences led to additional contributions and investments to help populations and areas affected by floods. More than 200 participants attended the Building Back Better Conference, including members of the US-Pakistani diaspora, prominent local business leaders, US business representatives, and Pakistani officials. They discussed ways to help the flood-affected population and communities.

    Ambassador Blome emphasized the longstanding US-Pakistan partnership in advancing Pakistan’s economic growth and social and humanitarian causes. He highlighted the need to strengthen climate resilience through the US-Pakistan “Green Alliance” framework and expressed the United States’ commitment to helping the US-Pakistani diaspora and Pakistan-based private companies find opportunities to pursue energy transformation and foster economic growth and development outcomes.