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Isolated Pakistan: Kuwait wins approval for setting up oil refinery in Balochistan

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By Zafar Bhutta
Published: September 10, 2016
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PSO will also ask Gulf state to extend the time frame for oil import credit facility. PHOTO: REUTERS

ISLAMABAD: Economic managers of Pakistan have given the go-ahead to Kuwait Petroleum Corporation for setting up an oil refinery in the coastal area of Balochistan – a welcome investment initiative for the largely under-developed province, which will reduce the need for import of refined petroleum products in the country.

The Economic Coordination Committee (ECC), the highest economic decision-making body, took the decision in a meeting held on September 7 in response to Kuwait Petroleum’s interest in pouring capital into setting up a refinery in Balochistan, said an official aware of developments.

Chinese company keen to set up oil refinery

The ECC also decided to seek an extension in the timeframe for oil import credit facility from three to four months in an effort to ease pressure on the country’s foreign currency reserves. It directed Pakistan State Oil (PSO), the state oil marketing giant, to try and persuade Kuwait Petroleum to extend the existing credit facility from 90 to 120 days or even more.

In another decision, the ECC permitted import of furnace oil and jet fuel from Kuwait without resorting to competitive bidding. At present, PSO imports diesel from the Gulf Arab state on 90-day deferred payment.

A representative of the Ministry of Petroleum and Natural Resources, who was present in the ECC huddle, said before the year 2000, Pakistan purchased diesel from Kuwait under a long-term contract with the Gulf state’s government.

However, in the wake of market deregulation, Pakistan government in 2001-02 asked PSO to enter into a fuel supply contract with Kuwait Petroleum. Immediately after that, the two sides inked an agreement for the sale and purchase of high-speed diesel only with payment guarantees from the government of Pakistan. Now, this agreement has been in place for the last around 15 years.

Earlier, Kuwait Petroleum had expressed interest in exporting furnace oil and jet fuel as part of the existing arrangement and was looking to install an oil refinery in the coastal area of Balochistan with storage facilities.

‘Pakistan has received Rs1.6tr as investment in oil and gas sector’

“Pakistan and Kuwait have an old bilateral relationship in terms of oil trade and Kuwait Petroleum is a time-tested supplier, well-reputed for the most economical supplies, product quality and supply security,” an official told the ECC meeting.

The Ministry of Petroleum and PSO suggested that furnace oil and jet fuel could be included in the existing sale and purchase contract by making an addition to it.

This could be done by invoking rule-5 of the Public Procurement Regulatory Authority (PPRA) Rules 2004, which provides for waiving mandatory public procurement procedures in case of an international or inter-governmental commitment of the federal government.

The ministry took up the matter with the PPRA and Law and Justice Division for legal advice.

Later, the PPRA endorsed the proposal. The Law Division, on its part, pointed out that the contract was linked with the agreement between Pakistan government and Kuwait Petroleum and new products could be added. Therefore, it would be treated and read as an integral part of the existing contract.

After examining the proposal from legal point of view, the Law Division cleared it subject to meeting all formalities.

Published in The Express Tribune, September 10th, 2016.
http://tribune.com.pk/story/1179648/kuwait-wins-approval-setting-oil-refinery-balochistan/
 
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Irrelevant title. The matter in the article no where suggests anything to this effect.

The only thing it suggests (rather reflects) is the mindset of our enemy.

Keep trying suckers and keep failing. Pakistan is on the path of progression and development.
 
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@A-Team isolation only exists in the minds of Afghans and Indians. No country is crazy enough to ignore such a huge economic market. :)
I feel sad when people compare Afghans and Indians. Afghans have a different relations with Pakistan than India. Afghans are atleast not enemy of Pakistan.
 
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Irrelevant title. The matter in the article no where suggests anything to this effect.

The only thing it suggests (rather reflects) is the mindset of our enemy.

Keep trying suckers and keep failing. Pakistan is on the path of progression and development.

The title is meant to be ironic, since our enemies bark day in and day out that Pakistan is isolated, nobody wants to talk Pakistan bla bla. Its become standard lingo on this site to use this nonsense in an ironic way :)
 
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I feel sad when people compare Afghans and Indians. Afghans have a different relations with Pakistan than India. Afghans are atleast not enemy of Pakistan.

Well what a retard title anyways we welcome any investment in Pakistan, a stable viable pakistan that is in peace with her neighbours is good for Afghanistan.
 
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I feel sad when people compare Afghans and Indians. Afghans have a different relations with Pakistan than India. Afghans are atleast not enemy of Pakistan.

For generations we have been brainwashed by our respective governments for pan-islamic reasons that Afghans are our brothers. But was it India that tried to block Pakistan's entry into the UN? Which country for decades tried to incite rebellions inside Pakistan (Pashtunistan)? Afghanistan has been hosting terrorists who have attacked Pakistan for decades now (https://www.theguardian.com/world/2010/nov/30/wikileaks-cables-afghan-pakistani-fugitive). TTP members have been caught by US forces coming out of Afghan army totally unharmed. Its high time we opened our eyes, that our western border is not manned by Islamic brothers who have got our backs! This lot is just waiting for a moment of weakness and they will try to grab our territory.

Having said that we should seek to normalize ties to the greatest extent possible with all our neighbours, but if they behave with hostility then we should and have responded with full force. Afghanistan's irrendtist policies of the 1940s-80s resulted foreign powers intervening in their internal affairs, and the result has been devastating for them. Still they have not learnt their lessons, it seems taking into account Ghanis recent statements.
 
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Seems like a no news, absolutely no information about the refinery in the article.
 
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By Zafar Bhutta
Published: September 10, 2016
977SHARES
SHARE TWEET EMAIL
1179648-oilrefinery-1473478820-152-640x480.jpg


PSO will also ask Gulf state to extend the time frame for oil import credit facility. PHOTO: REUTERS

ISLAMABAD: Economic managers of Pakistan have given the go-ahead to Kuwait Petroleum Corporation for setting up an oil refinery in the coastal area of Balochistan – a welcome investment initiative for the largely under-developed province, which will reduce the need for import of refined petroleum products in the country.

The Economic Coordination Committee (ECC), the highest economic decision-making body, took the decision in a meeting held on September 7 in response to Kuwait Petroleum’s interest in pouring capital into setting up a refinery in Balochistan, said an official aware of developments.

Chinese company keen to set up oil refinery

The ECC also decided to seek an extension in the timeframe for oil import credit facility from three to four months in an effort to ease pressure on the country’s foreign currency reserves. It directed Pakistan State Oil (PSO), the state oil marketing giant, to try and persuade Kuwait Petroleum to extend the existing credit facility from 90 to 120 days or even more.

In another decision, the ECC permitted import of furnace oil and jet fuel from Kuwait without resorting to competitive bidding. At present, PSO imports diesel from the Gulf Arab state on 90-day deferred payment.

A representative of the Ministry of Petroleum and Natural Resources, who was present in the ECC huddle, said before the year 2000, Pakistan purchased diesel from Kuwait under a long-term contract with the Gulf state’s government.

However, in the wake of market deregulation, Pakistan government in 2001-02 asked PSO to enter into a fuel supply contract with Kuwait Petroleum. Immediately after that, the two sides inked an agreement for the sale and purchase of high-speed diesel only with payment guarantees from the government of Pakistan. Now, this agreement has been in place for the last around 15 years.

Earlier, Kuwait Petroleum had expressed interest in exporting furnace oil and jet fuel as part of the existing arrangement and was looking to install an oil refinery in the coastal area of Balochistan with storage facilities.

‘Pakistan has received Rs1.6tr as investment in oil and gas sector’

“Pakistan and Kuwait have an old bilateral relationship in terms of oil trade and Kuwait Petroleum is a time-tested supplier, well-reputed for the most economical supplies, product quality and supply security,” an official told the ECC meeting.

The Ministry of Petroleum and PSO suggested that furnace oil and jet fuel could be included in the existing sale and purchase contract by making an addition to it.

This could be done by invoking rule-5 of the Public Procurement Regulatory Authority (PPRA) Rules 2004, which provides for waiving mandatory public procurement procedures in case of an international or inter-governmental commitment of the federal government.

The ministry took up the matter with the PPRA and Law and Justice Division for legal advice.

Later, the PPRA endorsed the proposal. The Law Division, on its part, pointed out that the contract was linked with the agreement between Pakistan government and Kuwait Petroleum and new products could be added. Therefore, it would be treated and read as an integral part of the existing contract.

After examining the proposal from legal point of view, the Law Division cleared it subject to meeting all formalities.

Published in The Express Tribune, September 10th, 2016.
http://tribune.com.pk/story/1179648/kuwait-wins-approval-setting-oil-refinery-balochistan/
But pak is isolated
Saudis qater oman Kuwait etc all middle Eastern nations involve in cpec economic frame but still
Pak is isolated indeed :D:P
Even Afghanistan and iran will join cpec soon lol

Seems like a no news, absolutely no information about the refinery in the article.
It's called blindness then
 
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Seems like a no news, absolutely no information about the refinery in the article.
Lol..You Indians are really funny...Yes it is false news...Balochistan is actually an independent country now due to efforts of Mighty Modi...India broke Pakistan into 4..This news is 50 years old! Go back to sleep now please...!
 
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So after this refinary is operational we will pump our own crude and refine it?

I am more interested to know why the hell Kuwait doesn't give visa to Pakistanis anymore ?
Even cheeni brothers dont give visa to us atleast not easily...relations should be on equal terms we have given them access to our country they should do the same...atleast give visas so we can visist Shanghai disney!
 
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For generations we have been brainwashed by our respective governments for pan-islamic reasons that Afghans are our brothers. But was it India that tried to block Pakistan's entry into the UN? Which country for decades tried to incite rebellions inside Pakistan (Pashtunistan)? Afghanistan has been hosting terrorists who have attacked Pakistan for decades now (https://www.theguardian.com/world/2010/nov/30/wikileaks-cables-afghan-pakistani-fugitive). TTP members have been caught by US forces coming out of Afghan army totally unharmed. Its high time we opened our eyes, that our western border is not manned by Islamic brothers who have got our backs! This lot is just waiting for a moment of weakness and they will try to grab our territory.

Having said that we should seek to normalize ties to the greatest extent possible with all our neighbours, but if they behave with hostility then we should and have responded with full force. Afghanistan's irrendtist policies of the 1940s-80s resulted foreign powers intervening in their internal affairs, and the result has been devastating for them. Still they have not learnt their lessons, it seems taking into account Ghanis recent statements.
In my humble opinion, the day when afghans begin to think in their own interest will be an starting of peace process in the region. Some Afghans are fighting Indias war, some are fighting western countries' war, some are at Irans side and others are on Pakistans side. But no Afghan is on Afghans side.
Another thing is Ashraf ghanis role, which is indeed in Afghanistans favor, but for Afghan society he is misfit. Current agreement between Afghan administration and Hikmatyar is a good sign, but again, USA and India will consider themselves isolated, and then again, a new start of another dirty war.
 
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