Pakistan has initiated negotiations with Qatar for deferral of up to $ 2 billion Liquefied Natural Gas (LNG) payment for one year, highly placed sources revealed to Business Recorder. . "Yes, talks on the matter were initiated by CoAS General Qamar Javed Bajwa during his recent visit to Qatar and the proposal for one year deferred payment up to $ 2 billion floated," sources stated, adding that now the Finance Minister was following on the talks held by Qatar with Chief of Army Staff (CoAS).
At present Pakistan is importing $4 to $5 billion gas every year under a 15-year agreement signed with Qatargas in February 2016.
Foreign Minister Shah Mehmood Qureshi is scheduled to leave for Qatar today (30 December) to finalise the draft agreement and memorandum of understanding (MoUs) ahead of Prime Minister Imran Khan's visit to Qatar in January 2019, sources said.
Chief of the Army Staff (CoAS) General Qamar Javed Bajwa visited Qatar to attend National Day Parade of Qatar on 18 December. During the visit, Sheikh Abdullah expressed a keen desire to further diversify and broaden mutual cooperation, including security. The CoAS also assured him of Pakistan's full cooperation in all mutual undertakings.
Earlier, on October 19, 2018, Qatar's Foreign Minister Mohammed bin Abdulrahman al-Thani was on a day long visit to Pakistan. He met his Pakistani counterpart Shah Mehmood Qureshi, Prime Minister Imran Khan and Chief of Army Staff Gen Qamar Bajwa.
On December 13, 2018, Finance Minister Asad Umar left for Qatar to participate in a three-day Doha Forum. The invitation for the visit was extended by the Qatari finance minister. Umer, during his visit, met senior Qatari leadership. Sources claim that he submitted a proposal for deferring LNG payment but this was officially not confirmed.
The ruling Pakistan Tehreek-e-Insaf (PTI) criticized the previous Pakistan Muslim League-Nawaz (PML-N) government for import of what it claimed was 'costly LNG' from Qatar at a price equivalent to 13.39 per cent of international benchmark crude oil price.
Minister for Petroleum and Natural Resources Ghulam Sarwar repeatedly said that his objection to the LNG agreement with Qatar was as to why a 15 year contract was signed when the government's tenure was 5 years.
Sarwar informed the standing committee on petroleum in October that Pakistan could not renegotiate the commercial LNG agreement with Qatar, however, acknowledged that it could be discussed at a higher level.
Former Finance Minister Salman Shah said that Qatar could be another lifeline (after Saudi Arabia and UAE) for the Khan administration following reports that the two countries held discussions on a deferred LNG payment facility.