Azerbaijan is going to offer one cargo of LNG at the existing worldÂ’s lowest price every month and Pakistan will be free to accept or reject the same without presenting any argument.
The economic crisis of Pakistan is due to a number factors including historically high inflation, constant devaluation of local currency, shortage of foreign exchange reserves and unavailability of energy resources.
The problem of energy perhaps stands at the top amongst all aforementioned issues. The industrial units are closing their activities due to this problem, resulting big wave of unemployment in the country.
The long-term agreement of Pakistan with Azerbaijan for the import of Liquified Natural Gas (LNG) at the worldÂ’s cheapest spot rate will bring very high level of relief for factories and domestic users.
According to the agreement, Azerbaijan will offer one cargo of LNG at the existing worldÂ’s lowest price every month and Pakistan will be free to accept or reject the same without presenting any argument.
In this regard, the Cabinet has approved an algorithm which will ensure that LNG will be offered at the most competitive rates. It includes a?number of criteria for acceptance such as requirement of LNG fuel, the price competitiveness as compared to the other fuel for that month and availability of sufficient foreign exchange to make the payment.
Masadik Malik, the State Minister for Petroleum said that the benefits of this deal would be extended to all industries and domestic users.
The Minister of State opposed to supply the subsidized gas to fertilizer industry rather he proposed to give subsidy to the farmers directly so as to decrease their input costs.