The incumbent Prime Minister Imran Khan after assuming his office from 18th August 2018 made several important international prime ministerial trips. China, Saudi Arabia, UAE, Malaysia, Turkey, Iran, and Qatar are the countries Imran Khan has paid an official visit to date. One of the visits proved to be highly successful and fruitful for Pakistan. The Saudi crown prince Mohammad Bin Salman Al Saud landed in Pakistan for his two-day trip and strengthened the bond between the two countries.
Moreover, several agreements were signed by both sides. Trade and investment relations was given utmost importance that reflected in Saudi’s announcement of investing $20 billion in Pakistan.
Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance stated that for the next three years Saudi Arabia will export petroleum products worth $3.2 billion to Pakistan
He recently created his official Twitter account and broke the news. Besides, social media is the fastest and progressive means of communicating with the masses.
2./ From 1st July 2019 KSA is activating the deferred payment for petroleum products facility of US$ 275mn per month amounting to US$3.2 Billion per year for 3 years. This will strengthen Pakistan's Balance of Payments position.
— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) May 22, 2019
Furthermore, during the visit of the Saudi crown prince to Islamabad, the two countries signed an agreement on February 17, for the import of petroleum products, crude oil, and LNG. It was announced in November and the oil facility was expected to become active in January 2019. However, due to some regulatory and procedural issues, it will now take seven more months for the facility to become operational from July 1.
Riyadh disapproved of OGRA (Oil and Gas Regulatory Authority) and (Hydrocarbon Development Institute of Pakistan) HDIP’s involvement in the testing of petroleum products to be imported from the Kingdom under the deferred payment facility, according to the sources.
Finally, Pak-Arab Refinery Company (Parco) and the National Refinery Limited (NRL) would procure crude oil from the Saudi Aramco Product Trading Company, while the Pakistan State Oil (PSO) and the Pakistan LNG Limited (PLL) would procure petroleum products and LNG from the Saudi company respectively according to the mutual agreement.
Pakistan had several responses to this news
We Pakistanis are paying High Tribute and Thanks to The Crown Prince of Kingdom of Saudi Arabia, His Highness Mohammad Bin Salman for His Moral and Financial Support for the Poeple and Development of #PAKISTAN
— Hammad Hassan (@hammadhassan60) May 22, 2019
Genuine concerns were raised and valid questions were asked. ‘What are the terms of re-payment?’
so in totality, over 10billion$ in three years. What are the terms of re-payment? Please clarify the terms, you will be leaving a huge additional debt for the next government, which may very well be not @PTIofficial @ImranKhanPTI
— Fawad Khan (@Fawadnk) May 22, 2019
Action needs to be taken by the government against commercial banks and currency exchange companies.
Govt need to control circulation of money and take corrective measures against commercial banks and currency exchange companies. They are resposible for that hoarding. Govt must stop issuance of currency note of Rs5000.
— pakistanmeripehchan (@Kings14588355) May 22, 2019
Dr. Abdul Hafeez should have been brought earlier than Asad Umar considering his substantial experience.
The best part about Dr. Hafeez Shaikh's experience is that he has extensive experience in economic oversight for developing countries. PTI should have brought him earlier instead of putting an Ex-CEO with no public experience in public finance. Lets hope for the best ..
— Ahmed says (@AhmedAlwayz) May 22, 2019
This announcement has definitely started a debate among the learned Pakistanis and they have queries including several concerns. If you have too, share in the comment section.