ISLAMABAD : As the government faces challenges in securing external financing for a $7 billion deal with the International Monetary Fund (IMF), the Prime Minister is scheduled to undertake an official visit to Qatar, seeking $1 billion in financial support. Sources indicate that the Prime Minister aims to bridge the external funding gap before traveling to the United States to attend the United Nations General Assembly’s general debate on September 27, 2024.
During his visit to New York, the Prime Minister is expected to meet with IMF Managing Director Kristalina Georgieva to discuss the new $7 billion program. He will likely reassure Georgieva that arrangements have been made to address the external financing gap and will seek support from the IMF Board’s Directors representing Saudi Arabia, Qatar, and the UAE.
The Ministry of Foreign Affairs (MoFA) has announced that the Prime Minister’s visit to Qatar will include discussions on several key agreements. Although the precise purpose of the visit has not been disclosed, it is anticipated that two Memorandums of Understanding (MoUs) will be signed: (i) a draft agreement for cooperation in the power sector between the Ministries of Energy of Qatar and Pakistan, and (ii) a draft MoU between the National Power Construction Corporation (NPCC) and Qatar General Electricity and Water Corporation (Kahramaa). MoFA has instructed the relevant ministries to expedite the formalities for these MoUs and provide updates on their status.
Additionally, the Prime Minister is expected to request Qatar to reschedule LNG cargo deliveries due to a current underutilization of LNG by power plants, attributed to an 8% reduction in electricity consumption. Both countries are also set to revise their LNG deal in 2026, for which the Petroleum Division is preparing a plan.
The Prime Minister may face diplomatic challenges during his visit, particularly regarding outstanding payments related to the Port Qasim Power Plant. Former Qatari Prime Minister Sheikh Hamad Jasim Bin Jaber Thani has expressed concerns about unpaid dues. Despite reports from the Power Division and Finance Division indicating that 91% of payments due to the Port Qasim Electric Power Company have been made between July 2017 and July 2024, SAPM Tariq Fatemi is puzzled by the lack of payment received by the Qatari company, which holds a 49% stake in the project alongside Power China.
Fatemi has requested a detailed response from the Power Division to address the concerns of the former Qatari Prime Minister. The response should clarify Pakistan’s efforts to meet its payment obligations despite financial constraints and outline potential options for the former Qatari Prime Minister to receive any remaining payments. Ends
