Featured Pakistan approaches Riyadh for renewal of $3.2b oil facility

[Ace of Spades]

Those who turned us into beggars, committed treason. Hang them for it.

That's where it gets ugly brother.... nawaz sharif and other criminal mafia is out on vacation not with out assistance from within; from state... and not because of some lahore high court's judge.

 

[Blacklight]

That's where it gets ugly brother.... nawaz sharif and other criminal mafia is out on vacation not with out assistance from within; from state... and not because of some lahore high court's judge.

A Soft state as @Mangus Ortus Novem rightly calls it, will ensure, the common man keeps on suffering, while the Elite piss & crap on them, and drink their blood. Ensuring in the process that The rich get richer, and the poor get poorer. Vicious cycle goes on.

Btw, no one has the balls to ask China, all these Infrastructure projects are good and dandy, and help you access our ports, so how about:

1) You waive of these $30bn $40bn loan, given your $3tr+ reserves? After all you are "supposed" to be "Iron Brother"

2) How about YOU actually help us with the economy and setup manufacturing, R&D facilities here, and start treating us like actual brothers?

 

[Blacklight]

Now this is really funny

This effects the common man directly, since petroleum prices have a multiplier effect, and this unfortunate news is "funny to you." Would you care to elaborate?

 

[Ace of Spades]

A Soft state as @Mangus Ortus Novem rightly calls it, will ensure, the common man keeps on suffering, while the Elite piss & crap on them, and drink their blood. Ensuring in the process that The rich get richer, and the poor get poorer. Vicious cycle goes on.

Btw, no one has the balls to ask China, all these Infrastructure projects are good and dandy, and help you access our ports, so how about:

1) You waive of these $30bn $40bn loan, given your $3tr+ reserves? After all you are "supposed" to be "Iron Brother"

2) How about YOU actually help us with the economy and setup manufacturing, R&D facilities here, and start treating us like actual brothers?

When incompetent people are at helms you can't expect them to be looking out for Pakistan's interests but rather their own. The points you raised are valid but please understand that it's business, pure business. With no place for emotions and in business each party is supposed to be looking out for their interests. And this is the history of rulers of Pakistan that they sell themselves too short and too early.

I have no complaint from China; they are doing what they deem good for their strategy and country but we should rather be asking questions from our policy makers.

 

[beijingwalker]

I would rate Saudi more a friend to Pakistan than even China which is in it for its self interest.

China is all for the good relationship between Pakistan and Saudi Arabia, Saudis do repeatedly helps, unlike some country, only offer lip service, Saudis at least puts the money where its mouth is.

 

[Blacklight]

China is all for the good relationship between Pakistan and Saudi Arabia, Saudis do repeatedly helps, unlike some country, only offer lip service, Saudis at least puts the money where its mouth is.

True, but some people want this bridge burnt ASAP, and SMQ is leading that front.

 

[Nasr]

An agreement between Pakistan and Saudi Arabia for provision of $3.2 billion worth of oil on deferred payments per annum has expired two months ago and decision about its renewal remains pending with Riyadh, sources told The Express Tribune.

The $3.2 billion Saudi oil facility was part of the $6.2-billion Saudi Arabian package announced in November 2018 to ease Pakistan’s external sector woes. Pakistan has already prematurely returned $1 billion Saudi loan - four months ahead of its repayment period.

Sources said that Pakistan could also return $2 billion remaining Saudi cash loan, subject to availability of similar facility from China.

The agreement over $3 billion cash support and $3.2 billion oil facility per annum had the provision of renewal for two more years.

The sources said that Saudi Arabia has not provided the oil on deferred payments since May this year. The budget estimates suggested that the government was hoping to receive minimum $1 billion worth of oil in fiscal year 2020-21, which started from July.

A spokesman of the Petroleum Division has also confirmed the development about expiry of the facility.

“The agreement expired in May 2020,” said Sajid Qazi, the spokesman of the Petroleum Division. The spokesman further stated that the efforts were being made by the Finance Division to renew the facility.

The spokesman said that the response from Saudi Arabian government was awaited over Pakistan’s request to further extend the facility, in line with the provision of the agreement.

The Ministry of Finance did not respond to The Express Tribune’s question about the updated status of Pakistan’s request. The State Bank of Pakistan and the Ministry of Finance have not yet taken the media into confidence about these developments.

(So from more than two months request isn't entertained)

In May last year, Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh had announced through his twitter handle that “from July 1, 2019 KSA is activating the deferred payment for petroleum products facility of $275 million per month amounting to $3.2 billion per year for three years”.

Saudi Arabia had rolled over its $3 billion loan from between November 2019 to January 2020, according to the International Monetary Fund (IMF) report. The IMF has termed the rollovers of Saudi Arabian, United Arab Emirates and Chinese assistance critical for Pakistan’s debt sustainability.

Pakistan’s repayment of $1 billion Saudi Arabian loan after borrowing from China and expiry of the oil facility underscores challenging relations between two Islamic nations.

Pakistan was paying 3.2% interest on Saudi Arabia loan. It has now arranged $1 billion loan from State Administration Foreign Exchange (SAFE) of China at London Interbank Offered Rate (LIBOR) plus 1%, which at current rates comes to around 1.18% due to near zero interest rates in the world.

The Saudi oil facility that had been secured after hectic backdoor lobbying with the royal family remained underutilised in the last fiscal year. The $769 million deferred payment facility on supply of oil was availed from Saudi government, according to the spokesman of the Petroleum Division.

The Saudi facility faced roadblocks since the beginning. Initially, both the countries had a plan to make the facility operational from January 2019. But it actually became operational from July last year.

The United Arab Emirates (UAE) had also announced a $6.2 billion package for Pakistan in December 2018, including $3.2 billion oil facility. But later on, the UAE reduced its financial assistance to $2 billion and also shelved the plan to give $3.2 billion oil facility on deferred payments.

The UAE and Saudi Arabian oil credit facilities were part of the $14.5-billion package agreed with three friendly countries, including China. After coming into power, the Pakistan Tehreek-e-Insaf (PTI) government faced an immediate challenge of filling a $12 billion hole, which the Pakistan Muslim League-Nawaz (PML-N) government had left behind due to a widening current account deficit.

Under the Saudi agreement, the Pak-Arab Refinery Company (Parco) and the National Refinery Limited (NRL) were required to procure crude oil from Saudi Aramco Product Trading Company. Similarly, Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) were supposed to procure petroleum products and LNG from the Saudi company, respectively.

The two countries inked a financing agreement for the import of petroleum products, crude oil and LNG on February 17, 2019 during the Saudi crown prince’s Islamabad visit.

Pakistan faces challenging situation at a time when its IMF programme also remains technically suspended for the last five months. Returning of Saudi loans and expiry of the oil facility could strain the official reserves of the central bank, which are built purely by taking loans.

@Mangus Ortus Novem it's all coming together; like small pieces of puzzle. Interesting times ahead. If you recall, i kept saying keep an eye on GCC, the pressure will come from there to rescue India... and here it comes. Ladakh fiasco is going on from last two months... china making deal with Iran...and now Pakistan reacting.

Pakistan really needs to plan ahead; the incompetency of foreign office will be very fatal at this point in time.

The problem in Pakistan is a systemic one. When you have decades of parasitic political, plundering Pakistan's wealth and taking loans upon loans for decades, the result is what you see before your own eyes. It is not enough that we have an honest Prime Minister in power today. Imran Khan needs honest Pakistanis to step up to the plate and join forces with him, in order to plan and execute actions which would render the defunct, leech, political class, neutralized. Boycott their entire political base, by forging unity and establishing indigenous small industries to work in coordination of each other. Render the "big cities" useless for these political parasitic elites. In other words, stifle the snakes by proliferating the masses with concise, easy to understand, information that would allow the Pakistanis to make the decision with ease and come in the direction of Patriots fighting the good fight to liberate Pakistan from these political elitist j@ck@$$es.

Those who are victorious, seize the opportunity when it appears. Today you have the opportunity, Pakistanis. Seize it by organizing yourselves with a clear mind and a straight forward objective. Of course, you know that the only way to achieve "Clarity of Mind" is through the Holy Qur'an and Sunnah. The rest is up to you!

 

[ziaulislam]

You cannot clear mess of decades in just 2 years. We lost leverage over GCC in past few decades and no one dear to dtop it. PTI government tried to amend it but India now have too much influence on them.

Furthermore, in diplomacy it should not be a zero sum game. Loan is our weakness and our foreign policy is weak due to loan so rather than we draft our foriegn policy based on loan we should focus more on economy to egt out of debt trap so that we can make an independent Pakistan eccentric foreign policy.

lets bring Bilawal & maryum back..as IK couldnt fix their mess with a magical wand he claimed he had..
freedom is a responsibility from what i am hearing from educated people and judges of the supreme court("bring british raj back") it seems we are nt ready for it.

 

[xyx007]

@Ace of Spades

Let us try to disect/deconstruct.. in detached, dispassionate manner... freezing all our biases..

Statecraft.

PakStatecraft is finding its feet after a long coma... so the wobbles are to be expected.

Now...the matter at hand as you correctly framed it... let us Contextualise this!

Deconstructing OIC:

ArabLeague's Oil Embargo made long lines for gasoline in the CombinedWest led by the US...with clear economic consequences... King Faisal got assasinated... the rest is History.

Hence, it was imparative for the US led CombinedWest to NEVER allow any actions by the Core Oil Producers to EVER use Oil as Weapon...

The OIC was/is a US PolicyInstruement to allow the so-called IslamicWorld to vent its Frustrations and be resinged to its Impotence.

As brought to attention of Paks before...once again... the US was the Force behind hiring and positioning the good Indians in the GCC... thus keeping the ImpericalGeoConstruct aka India afloat..

This was the same PolicyInstruement which has been allotting generous Visas to the good Indians in the US...

When the KosherAfghanJihad ended ... we all know what happened after that.

The OIC becoming more of free-lunch-shop than a talk-shop was a natural development.

The ones who gives Free-Lunch also demands something in return.

Therefore, we cann't allow ourselves being surprised or disappointed by the OIC... it would only result in disappoinment and more...
Since, the foundation of any expectation from OIC would be based on pure Emotion than the Ground-Reality!

The Net Comprehensive Strength of OIC is such that it will never be allowed to function as UnifiedPlatform... because that would upset the Overal Global Power Architecture and the Long Term Plans.

Great/SuperPowers ONLY work for their own interests and their own interests alone... rest is just CannonFodder or PolicyInstruements.

The US has been trying to get the good Indians into all types of Fora to enhance its position for sometime now... from NSG to OIC!

When last time the OIC invited Indian FM Pakistan took a firm stand... simply, because we had NO other Choice left...

Indian incorporation into OIC will solve many strategic headaches for not only India but also for the US.

With growing Sino-US ColdWar 3.0 dynamics .. the US needs to prop up India not only militarily but also diplomatically and economically.

Therefore, we do see a DirectedEffort to invest in India by the GCC... the force behind it is not only possible RoI for the GCC Investments but larger US Strategic Calculus.

India dumping Iran and joining the GCC on strategic level is also a US Construct...

Please, do see that PetroDollar Recycling and FinancialCapitalism are mutually dependent... incorporation of India into the exisiting Financial Architecture is of Vital Importance to the US.

Please, do note that it was the US and India who votted against SDR while the Sino-Rus Axis were pushing for SDR dominance @ps3linux

Seeing OIC anything other than a PetroDollar Component/PolicyInstruement will cause Strategic Blindness.

As long as OIC Core stays committed to the Agreed DollarSystem... red carpets.. otherwise... well we do know already!

Now this Sino-Iranian Deal is not new ..this has been in the offing long before Pres. Xi visited Tehran and expressed it.

Pakistan is a labour exporter to the OIC Core and due to Our Own Economic Mismanagement and extremely poor Statecraft of past two decades... well... Begger's Bowl... Free-Lunches come at a price.

EconomicTerrorism in Pakistan, MoneyLaundering and then the Investments by the EconomicTerrorists ... made our situation worse!

Can we Blame others?

Regardless, OIC is what it is. And That is That!

We can jump high and low... based on Expectations or Common ReligeousEthos won't make a dent to the PolicyInstruement that OIC is... and in its current form the OIC shall continue to serve this purpose.

This is the very SimpleReason that there is NO meeting by the OIC for the plight of PakKashmiris in IoJK or Collective Condemnation of the IndianFacistRegime.

Sooner we accept these FACTS the better!

OIC is a US Construct and shall remain so.

The growing Disconnect between Turkiye and GCC and IranianDynamics... is essentially making OIC making more deader than dead for any Collective Action. It shall only grow further...with Tukiye n Egypt squaring off!

Another OIC in the Making:

The Sino-American Last Tango is accelerating faster than expected...at least by the BemusedObserver.

This Acceleration has deep implications for the so-called IslamicWorld ...including the Core of OIC!

ASEAN including China is the EconomicGrowthEngine for the GlobalEconomy.

And if we add EmergingMarkets of Pakistan and Turkiye then the depth and dimensions of the GrowthPotential changes.

ASEAN is so deeply integerated with the ChineseEconomy that pricing it away is now not possible for the US led Quad.

EU desperately needs this GrowthEngine to come out of Deep Deflation.

Now this KL Conference was a Chinese attempt to Construct another OIC Core for its own GeoStrategic Goals... the Sino-IranianDeal needs to be seen through broader lens than just narrow ones.

SCO has already incorporated the CentralAsian 'Muslim' countries into the Sino-Russian Framework and they shall remain there. Further incorparation of Iran and Tukiye and later on ASEAN will grow.

With Sino-Russian trade increasingly settled in their national valuta is indictive of this Acceleration...which at this stage is nuanced and calculated..NOT Reactive.

Eurasia combined with ASEAN is both the Consumer and Producer of Oil/Gas/Uranium.

IF the Sino-Rus Axis succeeds in turning this into Consolidated EconomicShpere with Yuan/DigitalYuan as Trading Vechile then the effects will be not mere Historic but Paradigm Shattering.

Smack in the Middle is Pakistan... Young in population and blessed with PivotalPosition in the Eurasian Landmass...

The recent PakState PolicyPositions made public by the esteem and colourful SMQ or the repayment of loans earlier than required with the Help of China ... this tells us the direction of the Flow!

Russia's increasing muslim population or expanding StrategicFootprint in ME and NorthAfrica or the recent OilWar between KSA and Russia..

Or Russo-Turk rivalary in NorthAfrica/Syria... the Game for Oil/Gas resources and then 2023 is now almost here...

The Chinese investments in 'Islamic' countries and the need for BRI to go into a higher gear along with DigitalBRI ...

When we actually look at the EurasianMap then we can see with Clarity that a New OIC with a New Core is extremely valued by both Russia and China as it neatly binds the SCO, EurasianEconomicBlock and Decoupling with $.

Mr. Putin's defence of Islam of on regular basis is, once again, indictive of the an emerging and supported New Core of the New OIC.

Now that the IndianState has officially joined the AntiChina Quad and Galwan is active... India will be forced further to embrace the US... and in return the US PolicyInstruement old OIC will continue to shield India from MuslimAnguish for its CrimesAgainstHumanity in IoJK or increasing brutalities against the Muslims of MaqboozaHindustan.

BD and SL already embeded with BRI and BD showing signs of taking a positive view of Sino-Pak Axis!
Thus BD, with its large muslims population, shall be courted further to join the New OIC.


The above Deconstruction might appear ColdHearted but then the world we have been living in has been nothing else!

PakStatecraft's Choices and Consquences:

Pakistan has been Tounge Living Among Teeth for past 73yrs... with mixed bag of results... We can lament or wail all we want, it is what it is... and we have to Deal with it!

Pakistan's Choices:

• IMF
• FATF
• DebtServicing
• IPPs
• KhooniVirus
• Rent-a-KhooniLiberal
• Rent-a-MullhaMaffia
• MarasiMedia
  
• EconomicTerrorist still at large
• Colonial System of Governance
• FBR a liability
• Permanent Headache of Kabulistan
• IndianTerrorism in Pakistan
• Political-Instability
• Economic Recession and Inflation

The above is the Shardes which are piercing us and walk we must on these nails...

All of this is the ConfiningLandscape in which Pakistan is to make StrategicChoices:

• Pakistan has made the StrategicChoice of BRI i.e CPEC
• Pakistan has made ForeignPolicy choice of aligning with PRC and dovetail PakEconomicDiplomacy including focus on Africa
• RetaliationDoctorine towards Kabulistan and India
• NoMoreWars for someone else
• Re-engaging BD and SL
• More focus on ASEAN for trade and investments in Pakistan's SEZs
• High profile and consisten exposing of HindutvaFacism
• Taking a coordinating approach towards IoJK resultion with China
• SMQ giving last chance to Old OIC to act Now or Loose Pakistan Forever
• PakMilitaryDiplomacy to try to act as a bridge between Iran and KSA
• Facilitating AmericanExit from Kabulistan
• Accepting that Regional Powers i.e Russia, China and Iran are stakeholders in AfghanPeace
• Treating GCC and Turkiye as equal partners
• Ruling out any engagement with India which is for show and not concrete results
• Keeping the Voice of PakKashmiris alive...regardless, whether its enough or not
• Using Yuan as payment vehicle with the Chinese firms
• Standing with China on HK, Ladakh and SouthChinaSea
• Engaging Russia in the context of Eurasia and not through Indian angle
• Building Dams with the Chinese Investments
• Offering CPEC infrastructure to all CARs
• Accelerating oil/gas exploration within Pakistan
• Slowly moving into CPEC Phase2

Consequences for Pakistan:

• FATF sword will hang for a while
• IMF will do IMF on Pakistan
• EconomicTerrorists will continue to invest in unstability within Pakistan
• IndianTerrorism will become more focused on CPEC/China-in-Pakistan
• GCC will extert all the pressure possible for Pakistan to comply with their strategic objectives
• Pakistanis might be deported from GCC (this will be the extreme measure but cann't be ruled out)
• Pakistan's Ultimatum to OIC will not result in anything Condusive to Eleviate Plight of PakKashmiris in IoJK
• Pakistan can see the Oil Facility withdrawn if Pakistan continues with Policy outlined by SMQ
• The GCC $$ in SBP could be withdrawn
• The possible Investments in Pakistan from GCC could be withdrawn
• Should Pakistan invite OIC FMs on its own... only a few will turn up
• When Pakistan Officially becomes the Core of the New OIC the relationships with GCC will take a deep hit
• The US will keep Pakistan under pressure through all of its PolicyInstruements to give India a breathing space as Frontline state against China
• To keep a Balanced and Equal level relationship with Iran and GCC or Turkiye and GCC will be a Monumental Task for PakDiplomacy
• Price of Not abandoning CPEC or Sino-Pak Axis will have trade and diplomatic consequences from the US led CombinedWest in the short term

In short to become Pakistan, Pakistan shall have to pay dear price... accute pain in the short term.. more Independence in the Long Term!

All of this depends if Pakistan can put its house in Order... from Economy to Judiciary to Governance to Education to Rapid Industrialisation...

Every Choice exacts an Equal Price!

@Ace of Spades it is The Momentum of History in Acceleration ... ThirdActorDynamics in Great ME from Med to Gulf to SouthChinaSea ... nothing exists on its own in Geopolitics!


Mangus

@Arsalan

PakBrother mine,

Extremely valid points raised with PakPassion!

SMQ is his Master's Voice... let us leave it at that.

One is worried that with UAE pushed under the bus of FATF and Knife at the throat of KSA by the OrangeMan and Shale dying more than reviving... EVERYONE is in Trouble In OurWorld.

Once Again we are being Acted upon because of Our Own Doing... hence, I begged the question: Can We, Paks, Blame Others?

We turned Ourselves into Beggers NOBODY forced us. The UglyTruth.

EconomicTerrorists were/are Pakistanis not Martians!

AllooGoshtPhilosophers or NGO fed KhooniLeberals are not Aliens...

When I look at the Total EconomicSphere of YoungPopulations of the OurCoreWorld and the Utter EconomicMismanagement or NON-Integeration with the Core i.e GCC, Paksitna, Turkiye and Iran.... I feel bad.

However, my Feeling bad is going to change Nothing... just more painkillers!!!

We need to build PakState from Ground up... however, none seem to be interested in it... with DualNationalities for Political/Babu Elites...

One only tries one's best to impart Rationalism into PakDiscourse ...

MullhaMaffia or LiberMaffia both are parasites...

In the current geostrategic environment everyone is forced to Survive and take care of their National Interests.

Blame-game is ZeroResults!

Mangus

I love your reading and it makes more rational sense. agreed that putine is coming closer to Islamic world by this news which is really shocking from godless to god aware country.
https://www.nbcnews.com/news/world/...uld-allow-putin-stay-power-past-2024-n1155261

 

[The Accountant]

lets bring Bilawal & maryum back..as IK couldnt fix their mess with a magical wand he claimed he had..
freedom is a responsibility from what i am hearing from educated people and judges of the supreme court("bring british raj back") it seems we are nt ready for it.

What do you mean? You want to prefer slow but sweet poison over slow medicine?

Beyond sane logic ...

 

[Protest_again]

China is all for the good relationship between Pakistan and Saudi Arabia, Saudis do repeatedly helps, unlike some country, only offer lip service, Saudis at least puts the money where its mouth is.

I didn't mean any disrespect to China. Each country follows their own tradition in business. Saudi for all its fault has always given a helping hand to Pakistan in it's tough times. Now seeing Qureshi calling out such a country in the open like that is a disgrace and an insult.

 

[ziaulislam]

What do you mean? You want to prefer slow but sweet poison over slow medicine?

Beyond sane logic ...

seems majority of pakistani want that..
it is no secret that had there not been election engineering in south Punjab(either pushed by military or by feudal themselves) PTI would have easily lost the election ..

despite all this combined PMLN and PPPP still won more votes especially in highly educated class

 

[beijingwalker]

I didn't mean any disrespect to China. Each country follows their own tradition in business. Saudi for all its fault has always given a helping hand to Pakistan in it's tough times. Now seeing Qureshi calling out such a country in the open like that is a disgrace and an insult.

I agree, Saudis do help, with the money out of their own pocket, better than those who only offer lip service, talking is cheap. Saudi Arabia is a very good friend of China too.

 

[cleverrider]

That's where it gets ugly brother.... nawaz sharif and other criminal mafia is out on vacation not with out assistance from within; from state... and not because of some lahore high court's judge.

That's where it gets ugly brother.... nawaz sharif and other criminal mafia is out on vacation not with out assistance from within; from state... and not because of some lahore high court's judge.

Correct, From ganja, to the alloo here, how easily were the redundant(good but who put them there in the first place). Shows you who was in control and at what expense? Pakistan. From bureaucracy, to federal government, to judiciary all are incompetent, corrupt and complacent at times. Just because PB wants to be in control Musharaf (India done bang so we did kargil) I have no words and he has admirers (US money). But I never cared about people and Pakistan is full of them, probably some of worthless along the ones in Africa. Ok you wanna be in control so be it (like communist party in china) but your competition is not 220 millions monkeys its the world and history tell us your performance was below average you fat sh1ts stay indoor in DHA and dance on bollywood item numbers. You have a good piece of land and 220 million monkeys make something of it suwarrr kee nasal.

 

[Mamajama]

I agree, Saudis do help, with the money out of their own pocket, better than those who only offer lip service, talking is cheap. Saudi Arabia is a very good friend of China too.

Talking about Turkey?