The First Batch of Russian LPG reached Pakistan
The first batch of Russian LPG reached Pakistan
 |
Russia has delivered the
first batch of liquefied petroleum gas (LPG) |
Delivery of 100,000 metric tons of liquefied petroleum gas
to Pakistan was made possible through neighboring Iran. According to the
Russian Embassy, negotiations are underway to supply the second batch of LPG
to Islamabad.
Liquefied Petroleum Gas
The first shipment of liquefied petroleum gas from Russia
has reached Pakistan. The Russian Embassy in Islamabad said in a statement
issued on Tuesday, September 26 that with the arrival of LPG, the second major
phase of energy delivery from Moscow to Islamabad
was completed this year. According to
the statement, 100,000 metric tons of liquefied petroleum gas (LPG) reached
Pakistan with the help of Iran. The LPG supply deal was actually made possible
under an agreement signed between Russia and Pakistan earlier this year. Under
this agreement, the first batch of Russian crude oil reached Pakistan at the
beginning of this year.
Role of Iran
The supply of Russian LPG
to Pakistan was made possible through Iran's Sarkhus Special Economic Zone. The
Russian Embassy in Islamabad said in a statement that consultations are ongoing
regarding the second shipment of LPG,
but did not give details about Iran's role in it. Moreover, it is not clear how
much was the price of this LPG and how much concession was given to Pakistan. Meanwhile,
the federal government says that it has paid the price of Russian liquefied
petroleum in Chinese currency yuan, but the actual value of this contract has
not been revealed.
External Payments of Pakistan
A large part of
Pakistan's external payments is allocated to these energy exports. In view of
the country's ruined economy, Russia has given a discount and respite in the
payment of energy prices. Currently, the Islamabad government is suffering from
the
worst economic crisis in the country's history. The country is on the brink
of economic bankruptcy due to the huge external debt burden.
Foreign debt Repayments
According to official
data, the third largest debt owed to the government after domestic defense
expenditure and foreign debt repayments is the bill of the country's
established private power generation companies, or IPPs. However, despite
the payment of this amount by the government, the mountain of revolving debt
again becomes a burden on the national treasury. To be paid by the end of the
year. This amount is a big burden for the government of the country suffering
from the economic crisis. To reduce this burden, governments have repeatedly
increased electricity prices, which mainly benefit the electricity supply
companies.
International Monetary Fund
In June this year, the
situation had reached such a point that Pakistan barely had foreign exchange
reserves left to cover one month's imports. It had hoped to release $1.1
billion in funds in November, but the International Monetary Fund had imposed several conditions on
further payments. Pakistan was expected to present a budget that would meet the
IMF's approval. Be consistent with the program. It was also expected that the
foreign exchange market would be restored to normal functioning and steps would
be taken to close the gap of six billion dollars in revenue and expenditure.
