ISLAMABAD: Ministry of Foreign Affairs (MoFA) and Special Investment Facilitation Council (SIFC) are finalizing agenda for the forthcoming visit of Prime Minister Shehbaz Sharif to Qatar scheduled during the last week of the current month, well informed sources told Business Recorder.
The prime minister, sources said, is expected to request Qatari government to reduce number of LNG cargoes, hold meetings with the businessmen to attract investment, and seek state level investment in energy sector and participation in upcoming privatisation transactions. Export of Pakistani workers to Qatar is also on the proposed agenda.
The Amir of Qatar Sheikh Tamim bin Hamad bin Khalifa Al Thaniis expected to visit Pakistan this year, the sources added.
‘Wishlist’ being prepared as Qatari emir due
Rana Ihsan Afzal Khan, who is coordinator to PM on Qatar’s visit, is holding inter-ministerial meetings to finalise the agenda for the prime minister to be taken up during his visit.
The sources said each concerned ministry has been asked to prepare at least five investment projects/ teasers to be placed before the Qatari businessmen/ investors during the visit.
The sources said Pakistan will formally request Qatar to slash LNG cargoes to ease financial pressure on gas utility companies as LNG demand in power sector has drastically reduced due to reduction in power demand as a result of massive installation of solar systems by domestic, agriculture, commercial and industrial sectors.
“The prime minister is expected to request Qatar to reschedule LNG cargo deliveries due to a current underutilization of LNG by power plants, attributed to an 8% reduction in electricity consumption. Both countries are also set to revise their LNG deal in 2026, for which the Petroleum Division is preparing a plan,” the sources added.
The SNGPL which supplies LNG to power plants in Punjab has already requested to reduce LNG imports by deferring three cargoes each month.
According to MoFA the PM’s visit to Qatar will include discussions on several key agreements. Although the precise purpose of the visit has not been disclosed, it is anticipated that a few Memoranda of Understanding (MoUs) will be signed including: (i) a draft agreement for cooperation in the power sector between the Ministries of Energy of Qatar and Pakistan, and (ii) a draft MoU between the National Power Construction Corporation (NPCC) and Qatar General Electricity and Water Corporation (Kahramaa).
The PM may face diplomatic challenges during his visit, particularly regarding outstanding payments related to the Port Qasim Power Plant. Former Qatari prime minister Sheikh Hamad Jasim Bin Jaber Thani had expressed concerns about unpaid dues. Despite reports from the Power Division and Finance Division indicating that 91% of payments due to the Port Qasim Electric Power Company have been made between July 2017 and July 2024, SAPM Tariq Fatemi is puzzled by the lack of payment received by the Qatari company, which holds a 49% stake in the project alongside Power China.
Fatemi had requested a detailed response from the Power Division to address the concerns of the former Qatari prime minister.
When contacted, Coordinator on Prime Minister’s Qatar visit, Rana Ihsan Afzal Khan said that the Prime Minister has been invited by the Amir himself on inauguration of Manzar Exhibition which is focused on Art and Architecture of Pakistan. He will be the meeting the Amir, the PM and the business community of Qatar.
Regarding LNG Ministry of Energy (Petroleum Division) is coordinating on the LNG cargo issue with their relevant parties in Qatar.
Copyright Business Recorder, 2024
Comments
Comments are closed.