ISLAMABAD:
Qatar did not offer immediate of $2 billion in cash to Pakistan, but renewed his interest in purchase of two LNG-powered power plants that Islamabad initially did not want to sell without competitive bidding.
Doha seems more interested in investments in various sectors than supply cash deposit immediately out Islamabad, and government official said after a three day visit of Prime Minister Shehbaz Sharif on Thursday.
“After Qatar’s $3 billion investment commitment, there is no funding gap, hence no immediate requirements. for $2 billion cashFinance Minister Miftah Ismail said when contacted.
Last week Acting State Bank of Pakistani governor indicates Qatar can provide $2 billion cash to Pakistan on the shore up foreign exchange reserves.
The International Monetary Fund (IMF) has asked Pakistan to increase its gross official foreign exchange reserves to $16.2 billion by June next yearpointing out hole of $4.5 billion to be met by securing obligations from bilateral creditors.
Qatar policy of No-cash but investment in line with the policy that Saudi Arabia and the United Arab Emirates adopted this time towards Pakistan, violating past practice of signing off big credit checks that Islamabad never paid back.
King of Saudi Arabia on Thursday also invested $1 billion in Pakistan after a similar announcement was made UAE a few days ago.
materialization of these investments worth $5 billion out of three countries will require a strong commitment from government of Pakistan, which will also leave it on track follow procedure established by the IMF.
Qatar, through its $425 billion Sovereign Wealth Fund, has signaled its intention to invest $3 billion. in airports, power factories, port terminals, solar energy and stock market. However, another assistant prime minister said Qatar Investment Authority is not interested in investment in oil and gas sector; rather it was more interested in diversify your investments.
Member of the Prime Minister’s delegation stated that Qatar again showed interest in investment in Haveli Bahadur Shah and Baloks powered by LNG power plants. This is not Pakistan proposed power plants are more like Qatari government showed interest, he added
Last week, government decided to postpone the plan to sell these power factories in Qatar due to expected low sales pricewithout regard to obligations. Was view what government could get between $500 million and $600 million in best which was politically difficult to sell people how best priceThey added.
In the power division also advised prime minister what determines price of there were no plants possible and was need hire consultants for complete translation.
National Power Parks Management Company Limited (NPPMCL) owns 1,230 megawatts (MW) of Haveli Bahadur Shah and 1,223 MW of Bullocky. power plants. These power the plants were set up with government financing instead of 70:30 debt ratio to equity. Ministry of finance bought shares of these power factories a few years ago with funds from the Pakistan Development Fund.
government official said the sale of the Roosevelt Hotel in New York and Pakistan International Airlines (PIA) were not discussed. The Roosevelt Hotel is owned by PIA through PIA-Investment Limited. PIA-IL holds its shares through a subsidiary registered in British Virgin Islands. High priced hotel location was closed in December 2020.
But Qatar offered to invest in Islamabad International Airport and Jinnah International Airport, Karachi.
government official said that materialization of Qatar’s $3 billion investment will depend on how issues are resolved quickly out. He said that Prime Minister Shehbaz instructed set up cell monitoring and implementation to materialize investment.
