pakistan
Fuel shortages loom amid Pakistan’s economic woes
Pakistan could face a crunch in fuel supplies in February as banks have stopped financing and facilitating payments for imports due to depleting foreign exchange reserves, traders and industry sources said.
The country is facing a balance of payments crisis and the plummeting value of the rupee is pushing up the price of imported goods. Energy comprises a large chunk of the import bill.
Pakistan typically meets more than a third of its annual power demand using imported natural gas, prices for which shot up following Russia’s invasion of Ukraine.
“There is no shortage this fortnight. If we don’t have LCs (letters of credit) open right now, we might see shortages in the next fortnight,” a senior official at one of the oil companies told Reuters.
A letter of credit issued by the importer’s banks is a standard form of payment guarantee in the oil trade to the exporter.
Oil traders, however, are shunning countries such as Pakistan and Sri Lanka due to an acute shortfall of foreign exchange. Pakistan on Sunday raised petrol and diesel prices by 16 per cent to Rs249.80 a litre and is in talks with the International Monetary Fund to unlock a suspended bailout package.
State-owned refiner Pakistan State Oil (PSO) and Pakistan LNG Ltd have left a flurry of fuel tenders unawarded in the last couple of months.
At an industry meeting on financial challenges faced by fuel importers, State Bank of Pakistan officials cited “severe liquidity issues” faced by the country for delays in the opening of LCs, according to a Jan 19 letter from Imran Ahmed, director general of oil, reviewed by Reuters.
At the same meeting, the managing director of PSO said a gasoline cargo due for loading on Jan 13 has already been cancelled due to the non-opening of LCs. “He added that the country is having limited stocks and such a situation can lead to dry out,” according to the letter.
Previously, the Oil Companies Advisory Council (OCAC), representing refining, pipeline, and marketing companies, also flagged that delays in the opening of LCs could “lead to a fuel shortage in the country”.
In a Jan 13 letter to the Ministry of Finance, OCAC said Pakistan needs to import around 430,000 tonnes of gasoline, 200,000 tonnes of diesel, and 650,000 tonnes of crude oil every month, costing $1.3 billion to meet local demand.
“If LCs are not established on a timely basis, critical imports of petroleum products would be impacted which may lead to a fuel shortage in the country,” the OCAC said.
Pakistan bought only 223,000 tonnes of gasoline in December versus 608,000 tonnes in the same period a year earlier, data from Kpler showed. In January this year, the country was projected to import 270,000 tonnes of the fuel, compared with 393,000 tonnes in the same month in 2022, the data showed.
Some banks have denied delays in issues of LCs, while SBP did not respond to a Reuters email seeking comment.
“If there are no issues with LCs in Pakistan then why have the SBP and sector been holding meetings all of last week?” a senior official from one of the oil companies said.
PSO said last week it was ensuring a seamless supply of gasoline and oil across the country and had ample stocks.
It also said its import cargoes were arriving smoothly as planned.
pakistan
ATC express displeasure over police, discharges 32 PTI protestors
The Anti-Terrorism Court (ATC) Islamabad has discharged 32 individuals arrested in connection with the PTI protests, clearing them of the charges.
The 32 accused were brought before the ATC Islamabad late at night after being sent for an identification parade.
The case was heard by ATC Judge Abulhasnat Zulqarnain, with the accused represented by their lawyer Ansar Kiani.
Although the police had claimed that the arrests were made at the I-9 and Margalla police stations, the accused were brought to the court from Jhelum Jail, which led to the judge expressing displeasure.
During the proceedings, the police argued that the accused were arrested on November 25 and the identification parade had not yet been conducted. The police requested a 30-day physical remand for each of the accused.
However, the defense lawyer opposed the request, stating that there had been no identification parade and the police were seeking remand for recovery purposes.
The lawyer further claimed that the police had picked up laborers from their homes just to meet arrest quotas, involving them in the protest case.
After hearing the arguments, Judge Abulhasnat Zulqarnain ordered the release of the 32 accused by discharging them from the case, removing their handcuffs in the courtroom.
He also warned that if the police re-arrested them, the officers would be handcuffed as well.
pakistan
ATC extends Qaiser’s bail in Sangjani vandalism case
An anti-terrorism court in Islamabad on Saturday extended bail of Pakistan Tehreek-e-Insaf (PTI) leader and former National Assembly speaker Asad Qaiser in a case pertaining to vandalism in Sangjani public gathering held by his party on Sept 28.
Justice Abual Hasnat Zulqarnain of the ATC conducted hearing of the case against the former NA speaker.
The petitioner’s lawyer requested exemptionof her client from appearance, citing terminal illness.
The lawyer also attached medical certificate of the former NA speaker.
Later, the court accepted the plea of Qaiser by extending his bail till Jan 7.
pakistan
President hosting secret meetings to make Bilawal PM: Barrister Saif
Khyber Pakhtunkhwa Information Adviser Barrister Muhammad Ali Saif claimed on Saturday that “secret meetings” were being held in the President House to oust Prime Minister Shehbaz Sharif and bring Pakistan Peoples Party (PPP) chairman Bilawal Bhutto Zardari as the new PM.
In a statement, the adviser said both father and son (President Asif Ali Zardari and Bilawal) were making all the necessary efforts for premiership of the latter, adding that the president was on a secret mission to see his son as the PM.
“Zardari should make his son the PM through fair means instead of stealing the mandate given by the people to the Pakistan Tehreek-e-Insaf (PTI). Both Sharifs and Zardaris are enjoying the power through a stolen mandate,” he added.
He reiterated that Zardari should keep it in mind that the PTI would continue its struggle to restore its mandate.
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