Rs 41,500 crore loss: Pakistan PM Shehbaz Sharif is begging in front of Qatar's Emir as Pakistan faces massive trouble over...
Pakistan may lose $5 billion (Rs 41,500 crore loss) due to the LNG deal signed with Qatar in 2015. Scroll down to know more.
Shehbaz Sharif- File image
Pakistan-Qatar LNG deal: In a massive setback for Pakistan, Shehbaz Sharif's country is stuck in its long-term LNG import deal with Qatar. Under the agreement signed in 2015, Pakistan must buy LNG cargoes even if it doesn't need them, or else pay the full amount. Currently, Pakistan has a surplus of LNG and electricity capacity, leaving it with no requirement for additional cargo for at least five years and therefore, there is a fear that Pakistan may lose $5 billion (Rs 41,500 crore loss).
Why Pakistan may face a massive loss of $5 billion?
As a part of the agreement, Pakistan is set to receive 177 cargoes worth $5 billion by 2030, which it cannot consume. The agreement also says that if Pakistan refuses, it will still have to pay the cost. With the economy in crisis, this would be a major burden.
Story highlights:
- Prime Minister Shahbaz Sharif is preparing to visit Qatar to seek concessions in a LNG deal.
- Pakistan may lose $5 billion (Rs 41,500 crore loss) due to LNG deal.
- Pakistan PM will request Qatar to sell Pakistan's cargo to other buyers or to defer deliveries until 2031.
Why is Pakistan under huge trouble?
Prime Minister Shahbaz Sharif is preparing to visit Qatar to seek concessions and during his visit to the Gulf nation, he is expected to request Qatar to sell Pakistan's cargo to other buyers or to defer deliveries until 2031. The government of Pakistan led by hopes that Qatar will listen to them and will give some concessions in this matter. If Qatar refuses, Pakistan could face severe financial and energy-sector challenges.
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