Pakistan to Also Get Oil on Credit from Azerbaijan

[ghazi52]

Pakistan to Also Get Oil on Credit from Azerbaijan

After the facility of oil on deferred payment was extended by Saudi Arabia and UAE, Pakistan is all set to receive the same facility from a central Asian country.

Azerbaijan has offered Pakistan to supply oil on credit.

The government has convened the meeting of Economic Coordination Committee of the cabinet (ECC) of the cabinet to approve the agreement with the central Asian state. The meeting will be held on Tuesday, which is expected to give its approval for an agreement with Azerbaijan for fuel supply on credit.

Finance Minister Asad Umar will preside over the ECC meeting. The meeting will also review a status report on the export of public sector wheat stocks, arrangement of funds for payment of dues to personnel of the Pakistan Machine Tool Factory, and allocation of additional quantities of gas production from the Adhi gas field to the Sui Northern Gas Pipelines Limited.

According to a media report, Azerbaijan had offered to supply petroleum products to the Pakistan State Oil (PSO) through the State Oil Company of Azerbaijan Republic (SOCAR) on credit under a long-term agreement.

In February 2017, the two sides had entered into an inter-governmental agreement for the supply of a number of oil and gas products, including furnace oil, petrol, diesel and liquefied natural gas (LNG). PSO and SOCAR are now expected to formally sign a commercial agreement for the supply of motor gasoline (petrol) against a 4-6 month credit facility of $100-150 million.

The demand for furnace oil has since tumbled in Pakistan after LNG imports, while PSO already had a long-term supply contract with the Kuwait Petroleum Company (KPC) for diesel on credit.

SOCAR has an oil facility in Dubai, which gives it the capability to supply petrol to PSO through a swap arrangement. The former Soviet republic is landlocked, and oil and gas from the country is passed through the Turkey-Georgia pipeline named Baku-Ceyhan-Tblisi pipeline.

Pakistan has been seeking oil supplies on deferred payments from two major sources — Saudi Arabia and the United Arab Emirates — to secure a foreign exchange cushion that can ease pressure on its declining reserves. It has already secured a $3 billion oil facility per annum from Saudi Arabia that would actualize in January at a rate of about $ 375m per month. A similar arrangement is currently under process with the UAE

 

[Foxtrot Delta]

Azerbaijan has very close relations with pakistan. We should remember them always

 

[Yankee-stani]

Azerbaijan has very close relations with pakistan. We should remember them always

Good deal

 

[Dubious]

So much on credit = loan...Any plans to pay it back?

 

[ghazi52]

Good point...

 

[aziqbal]

has anyone told Pakistan a loan is a loan and you have to pay back with interest

its not a freggin grant come on

 

[DeceptiveEagle]

We'll buy from all over the world then next-new govt will calculate the credit

 

[ziaulislam]

has anyone told Pakistan a loan is a loan and you have to pay back with interest

its not a freggin grant come on

you are suppose to pay back 30b loan in next 2 years..its not a bad idea to replace loans with loans..especially loans with low interest..

 

[American Pakistani]

So much on credit = loan...Any plans to pay it back?

True, I doubt many people understand that. This is like having a patient on a ventilator support, what matters is if inside organs kick start or not within certain period.

I always say, nothing will change unless the 220 million people living inside won't start changing and doing something instead of relying on govt for every spoonfeed.

 

[Dubious]

220 million people living inside won't start changing

The problem is everyone seems to think they are kids of some kings! I mean we have engineers but no inventions.
We have doctors and scientists but no discoveries! We have resources but too much greed and lack of foresight!

 

[Osiris]

Current Pakistani government has taken about $15 Billion loans, since they came to power, they will all start coming due in 1 - 2 years, with an average rate on interest of 3.5%.

 

[ziaulislam]

True, I doubt many people understand that. This is like having a patient on a ventilator support, what matters is if inside organs kick start or not within certain period.

I always say, nothing will change unless the 220 million people living inside won't start changing and doing something instead of relying on govt for every spoonfeed.

requires a mindset change
e.g in USA people pay half of their income to govt and expect nothing in return..
in pakistan every one wants a free meal even if they can afford it

 

[American Pakistani]

requires a mindset change
e.g in USA people pay half of their income to govt and expect nothing in return..
in pakistan every one wants a free meal even if they can afford it

So true.

IMO another reason for Pakistan performing bad is also we have a mindset that women just belong in char diwari. This has made almost half of the society disable already, then comes those lazy men who doesn't work and rely on either govt or ill means.

 

[KediKesenFare3]

So true.

Right but we shouldn't forget that the government has to change first. People will follow if the transformation of Pakistan's state institutions initiated by the government leads to success.

The state is the only power which can change the society fundamentally - either by force or by using peaceful methods.

It doesn't matter if the average Pakistani is uneducated or does not understand the currently ongoing reforms. A child, too, has sometimes no clue what his parents are doing and why.

But if you do your job wisely, one day your children will understand you and they perhaps even try to copy your methods of education while dealing with your grandchildren.

The government needs time and space to work and undo all the past mistakes. Change needs time.

@Indus Pakistan

 

[ghazi52]

Right but we shouldn't forget that the government has to change first. People will follow if the transformation of Pakistan's state institutions initiated by the government leads to success.

The state is the only power which can change the society fundamentally - either by force or by using peaceful methods.

It doesn't matter if the average Pakistani is uneducated or does not understand the currently ongoing reforms. A child, too, has sometimes no clue what his parents are doing and why.

But if you do your job wisely, one day your children will understand you and they perhaps even try to copy your methods of education while dealing with your grandchildren.

The government needs time and space to work and undo all the past mistakes. Change needs time.

So true.