Middle East

Cash-strapped Pakistan cuts sales of two LNG power plants to Qatar: Report – Doha News

Finance Minister Ismail had included proceeds from the sale of LNG power plants in his forecast of $8.5 billion in overseas inflows for this financial year to meet the total external funding requirement of $35 billion.

The Pakistani government has scrapped plans to sell two LNG-fired power plants to Qatar, instead offering a 51% stake in New York’s Roosevelt Hotel and Pakistan International Airlines (PIA), it was reported. Express Tribune.

Prime Minister Shebaz Sharif made these decisions during a meeting convened to prepare for his trip to Qatar next week, tentatively scheduled for August 22-23.

The meeting was also attended by Finance Minister Mikhta Ismail and former Prime Minister Shahid Kakan Abbasi.

The prime minister has also organized a committee to finalize these recommendations and complete all documents before him by the end of this week, they said. I’m leaving for the Gulf countries next week.

The group has considered the prospect of selling two LNG power plants to Qatar, sources said. However, some participants believe Islamabad may not get the best price after deducting his 104 billion rupee debt owed by these power plants.

They said the government could get at most $500 million to $600 million after getting rid of the debt.

National Power Parks Management Company Limited (NPPMCL) owns the 1,230 megawatt (MW) Haveli Bahadur Shah and 1,223 MW Balloki power plants. These power plants were established with government funding rather than a 70:30 debt-to-equity ratio.

The Ministry of Finance had purchased shares in these power plants several years ago through proceeds from the Pakistan Development Fund.

Sources say the government’s Rs 103.7 billion debt will have to be replaced with bank borrowings, which will significantly lower the final price. 70% of the cost of the project should be converted into long-term funds for the privatization of the power plant according to the rate-based capital structure.

Meanwhile, a senior government official said a price discovery for the LNG facility could not be achieved quickly, pointing out that these projects may not be given to the Qatari government for investment purposes.

Finance Minister Ismail had included proceeds from the sale of LNG power plants in his forecast of $8.5 billion in overseas inflows for this financial year to meet the total external funding requirement of $35 billion.

according to saucethe regime also urged the Qatari government to establish a $1 billion food and livestock safety fund for investments in Pakistan with the aim of manufacturing items in the Asian country and exporting them to the Gulf countries. I considered doing

Qatar wanted to acquire Pakistani land for agricultural purposes, but state restrictions made direct ownership impossible, the report said.

Sharif plans to travel to Qatar to address LNG supply shortages caused by rising prices on international markets.

Sharif, who will lead Pakistan’s new government, has had to deal with a petrol crisis that has caused power outages in several parts of the country.

https://dohanews.co/cash-strapped-pakistan-slashes-two-lng-power-plant-sales-to-qatar-reports/ Cash-strapped Pakistan cuts sales of two LNG power plants to Qatar: Report – Doha News

Back to top button