MUSHTAQ GHUMMAN
ISLAMABAD: Prime Minister Imran Khan is likely to visit Saudi Arabia again on October 22, 2018 in the hope of getting a multi-billion dollar package in addition to oil facility on deferred payment for a few years.
Well informed sources told Business Recorder that Finance Minister Asad Umar, Prime Minister’s Advisor on Commerce, Textile, Industries and Production and Investment, Minister for Information and Broadcasting Fawad Chaudhary will accompany the PM. Unconfirmed information suggests that Minister for Petroleum Ch Ghulam Sarwar Khan will also be part of the entourage.
On October 17, 2018, talking to a delegation of Council of Newspaper Editors (CPNE) All Pakistan Newspapers Society (APNS) and Pakistan Broadcasters Association (PBA), the PM had indicated that Pakistan might not have to approach the International Monetary Fund (IMF) for a bail-out package.
The sources said both countries had been holding bilateral talks since the last visit of PM Imran Khan to Saudi Arabia and the outcome of those talks would be revealed during his forthcoming visit.
Prime Minister’s indication of not seeking IMF loans was based on “high level interaction” talks with Saudi authorities for “required” funds which remained successful, sources revealed to this correspondent.
Finance Minister recently revealed that an IMF negotiating team was arriving in Pakistan on November 7 and stay till November 20.
Earlier, Pakistani authorities had claimed that Saudi Minister for Petroleum will be visiting Pakistan during the third week of October, after “operational level” delegation which recently visited Pakistan submits its recommendations at the highest level.
The PTI government has extended an invitation to Saudi Arabia to become the third partner in the China-Pakistan Economic Corridor (CPEC) plan.
On September 24, 2018, Information Minister had stated Saudi Arabia is expected to lend to Pakistan in the second week of October.
If Saudi Arabia and other friendly countries extend loans to Pakistan to raise its foreign exchange reserves, Pakistan can negotiate a loan with IMF on less stringent conditions.
Saudi Arabia has already indicated that it would establish an oil refinery in Hub Balochistan after its delegation visited the site.
A memorandum of understanding (MoU) was also signed between Pakistan and Saudi Arabia at the end of Saudi delegation visit in which the latter sought acceptable rate of return based on size of the potential investment in crude oil refining, marketing, distribution and related downstream sectors subject to applicable laws and regulations both in Pakistan and Saudi Arabia.
According to the MoU, PSO and Saudi Aramco will conduct a study on investment opportunities in the refining/chemicals, distribution, marketing and related downstream sectors in order to evaluate the economic and technical feasibility of these opportunities in Pakistan while taking into account all logistical and regulatory factors including: (i) securing favourable investment incentives for an acceptable rate of return based on size of the potential investment; (ii) the allocation of appropriate lands to accommodate the initial investments and any potential expansions; (iii) the allocation of appropriate easement and entry rights to freely access the investment sites and freely transfer the feedstock and products to and from such site, including via roads, vessels, pipelines and any other means of transfer and transportation in the country; (iv) the allocation of appropriate tax exemption as per policy and; (v) the allocation of natural gas as feedstock for refining activities at mutually agreed prices.
Prime Minister will also participate in international conference on investment. Saudi Crown Prince will take the world leaders into confidence on reforms agenda.
