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Pakistan has asked UAE to provide deferred payment facility for oil import, says Qureshi
Foreign Minister Shah Mahmood Qureshi on Friday said Pakistan has asked the United Arab Emirates (UAE) for a deferred payment facility for the import of oil, similar to the one agreed with Saudi Arabia earlier this week.
Qureshi said this while addressing a press conference in Islamabad, during which he briefed the media about a meeting earlier in the day between Prime Minister Imran Khan and a high-level delegation led by UAE Minister of State Sultan Ahmed Al-Jaber.
The minister said the UAE delegation is visiting Pakistan under the aegis of UAE Crown Prince Sheikh Mohammed bin Zayed to discuss mutually beneficial projects which both countries can undertake.
"The delegation said bilateral relations between Pakistan and UAE are decades old, but there was a dip in the last 4-5 years," Qureshi said. "In today's meeting, we have discussed measures to expand the economic side of our longstanding bilateral ties."
"First, in the agriculture sector, we have discussed how we can increase exports to the UAE. We have an exportable surplus in rice which we used to export [to the country], but our exports have decreased considerably in the last few years."
"In fruits, I discussed with them the export of citrus and mangoes. We have both in abundance and there is a demand in UAE too. Due to our proximity, we can easily export these despite them being perishable items," the foreign minister said, adding that the UAE has an "effective way of processing and packaging food, so we have decided to benefit from their expertise".
The foreign minister further said that the matter regarding setting up a state-of-the-art LNG terminal in Pakistan with UAE's cooperation was also discussed during the meeting. The Emirati delegation has expressed interest in setting up an LNG terminal in Pakistan," he said.
Qureshi said a member of Emirati real estate company Emaar was also part of the delegation. "We told them that the government was planning to build five million houses and asked if they could be of any help in this regard," the foreign minister said.
"Another issue which we are facing these days is that of water shortage. UAE holds expertise in water desalination and if they could invest in setting up a plant in Karachi or Gwadar, our water crisis will be resolved and it will be a massive development," Qureshi said.
Foreign diplomatic postings
Referring to Pakistan's foreign policy, the foreign minister said Pakistan is pursuing its policy with other countries based on mutual benefits and national interest.
In order to make the foreign policy stronger and robust, it has been decided to appoint professional diplomats in key foreign capitals, the minister said.
Qureshi said Nafees Zakaria, who is currently serving as Pakistan's High Commissioner to Malaysia, will be posted to London as the High Commissioner.
Raza Sher Tarar will be appointed Pakistan High Commissioner to Ottawa, Canada, he announced, adding that Raja Ali Ijaz will be posted as Pakistan High Commissioner to Saudi Arabia.
Commenting on the prime minister's upcoming visit to China, Qureshi said Imran Khan will call on senior Chinese leaders besides participating and delivering a keynote address at an international expo.
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Comments (79) Closed
"we told them that the government was planning to build five million houses, and asked them if they could help us with that". Make certain it will not be a corrupt deal. All these houses must be purchased for the right price.
I am born and brought in UAE. From my experience they will never give you 1aed deferred facility. They are more inclined towards India and they treat Pakistanis very unfairly. In fact I was actually taunted for being a Pakistani by many Emiratis. Beware of these Arabs.
@Canan Rajpar: How possible? Can these goons live without corruption?
First of all it’s not a government job to build houses. Provide cheap electricity people can afford, clean water so people stay healthy save from hospital bills, corruption free environment to do business, and pay attention to corn and soybeans farming for edible oil input, build dams and supply gas to fertilizer manufacturers to save billions of foreign reserves. Private sector is doing wonderful job building houses like behria towns scheme.
@Javed "First of all it’s not a government job to build houses. Provide cheap electricity people can afford". What will people do with cheap electricity if they don't have a place to live in?
I appreciate the government's efforts to put its fiscal house in order. We must support the government and be willing to give necessary sacrifices.
@Zeeshandxb This is not a 'gali mohalla deal'. This is a diplomatic-cum-strategic deal which has bilateral interests from both sides.
I do not understand where the money came from? This is exactly why coming gov will also have to go to IMF.
@Javed What makes you think providing affordable housing is not the government's job? Please spare a couple of minutes and read how the governments in the west facilitate their citizens.
Problem is that we do not have enough foreign exchange or reserves to buy oil from international market to run the country. So, IK is trying to get oil to avert future hardships. What is wrong with that. Rather be thankful to IK and PTI for what he and his party doing for Pakistan.
So now you came to know, how hard it is to govern!
Imrans tenure is becoming a one point agenda to ask for money and help.
Can you also talk to Chinese for deferred payment on cpec loan for.indefinite.time.period. they are iron friends.after.all
Living on borrowed funds....not ideal. Between China, IMF, Saudi Arabia, US, UAE...how much more can you keep borrowing?
@Sikander Bakht Abbasi well sikander there ain’t free lunch. UAE will definitely get double of what they give. You and I will see it in future. Emirates have very negative perception and attitude towards Pakistanis. They have appointed Indians on key positions in their semi government firms. Indians have a lot of say in their policies.
What about Qatar. In last 3 to 4 years Pakistan had good relationships with Qatar. Which was disliked by Saudi Arabia and UAE.
Credit, Credit and more credit, Remember one day you will have to pay everything including heavy interest!!!
@Sikander Bakht Abbasi : Only we have more bilateral interests, not UAE...We are not in good terms with UAE. Hope you have not forgotten the threats by an emirati minister to our republic.two years back...
You don’t ‘ask’ but ‘request’ if you want some favours from somebody.
Can the FM " ASK " the UAE....... He can only " REQUEST " the UAE.......
R.S. Menon, Bangalore
What kind of demand is that???
Deferred payment is a deferred loan which have to be paid. Each government is creating liabilities which are increasing. No solid plans to repay the past loans.
Emaar can invest in Gwadar and we should have asked them to invest in gwadar real estate. As for exports, yes we should increase our exports to UAE but we must also visit countries like Russia, Germany & UK to increase our exports
@Javed what a strange logic. It's not the govts job to provide a roof over people's heads? So these private groups pay zero tax from their profit?
@Zeeshandxb You could be right, but it is not logical and we need to correct it.
@Canan Rajpar. Man, can you be a little supportive and patient ? Why you have to be so ugly in your thinking? How about support the government, pray for the success.
@Zeeshandxb. I agree, but the business deals they are speaking off are mainly mutual beneficial projects, LNG, fruits and using their expertise in water purification. Most of it won't happen in UAE. To your point, I have seen their behavior while at the airport as I was changing planes. Not very friendly people, specially the men.
IMF loan,Chinese loan,Soudi loan,UAE loan,World Bank loan,US loan,expiate Pakistanis loan and still looking out for more loans.This leads to economic bankruptcy.
I hate UAE.
Emaar makes houses and sells them at very high prices.if they will help than the middle class should forget about getting a chance to buy home.the poor wont even come close
I hope IK is keeping track of all countries who are giving alms.
@Zeeshandxb... whoever you are.. you must understand that most world leading economies are based on credit... which in plain English means borrowed money!!
Deferred payment facility is only temporary solution. Friends don't help for ever. Pakistan should find a permanent solution.
@Zak the Great This will lead to economic solvency. not bankruptcy. Pakistan is facing short term as well as long term challenges. If you come out successfully from short term challenges, then only you can achieve your long-term objectives...
Any loan is a burden but PTI Ministers seems rejoicing when they secure a loan as if that loan won't be returned. That is a habit of Governments in Pakistan, be it civilian or Military dictatorships.
@Javed Homelessness, poverty reduction, and subsidized housing is the Govt.'s job.
I guess IK government is doing a very good job in its foreign policy and they want to listen to them as they know its not a corrupt government unlike before .Keep up the good work .
U A E doesn't trust Pakistan ,take my word
@Zak the Great You have any solution ?
@Sardar Balwinder You have any solution to suggest ?
@BitterTruth May be you can come out with some suggestion , very easy to criticize .
@Canan Rajpar I think the cycle of loans have started. Now this loan and deferred payments will continue for the government in its entire term.
Countries have bilateral interests sometime beyond our imagination .They talk to honest people and not the corrupt people like Nawaz and company .
@Zeeshandxb dude you say you were born and raised in the Emirates & you claim not to trust them?? That sums it all..!! Respect and love the place which gives you love/respect & security. If you don’t like UAE, then please leave. You are a ungrateful..!!
@Zeeshandxb that’s not true. You have a very narrow minded thought. Indians & Pakistanis equally have senior positions in private sector, not government sector which is reserved for Emiratis. You have absolutely no clue whatsoever about expat life here in uae.
@Rahshid KHAN Why in 80s we were against USSR when they were providing houses to their citizens?
@Art KP may ask why?
@Meow the repayment start at 2026. Meaning its already a deferred payment
@k k tiwari - They all trust Imran Khan.
Everyone wants to use the new CPEC route to China because China has significant savings from importing oil/gas from Gwadar than its Northern parts. UAE could lose the oil revenues to KSA under the new plan if they put a refinery in Gwadar. You are talking about whopping $162 billion oil market alone.
This is not asking for donation. Negotiating better and better payment terms is a good business strategy.
What happens when you have to pay on the "Deferred Payments?"
@Zeeshandxb - "Beware of" hypocrites who pretend to be someone they are not!
@Majnu Loans are sometimes necessary. Money does not grow on trees nor can it be conjured up. There is a principle in finance called leverage. PM Khan is looking for leverage. He has the fulcrum.
Every country will work their own national interest.We welcome to all of them who are invested in our country
@Zeeshandxb and you still waste your time there...
IK government has embarked on securing loans. Who, how, when and how much will be paid back?
@Haryanavi_Chora what about Bharat Mata.
@Majnu India is buying all the weapons on credit
@Shehz so it to time for the Pvt companies to pack up and leave . Govt can't build a single home without their tax money.
are you kidding ...bahria town is for rich peoples and 50 million houses will be built for poor ....
@Zeeshandxb True.But they will know the worth when India will stab them in the back.
@citizen / Zeeshandxb for his reply to Sikandar Bakht. When the three time PM of Pakistan,Ministers,Political leadership and other bigwigs have Iqamas ( work permit ) which the government of UAE knows is not meant for working there but for the purpose of money laundering / to hide illegal wealth etc, then, what would be their attitude towards that country and how would they treat the common citizens of that country.
Going by the current trend Pakistan will need more than USD 25 billion IMF bailout at the end of 3 years.
Any idea why Pakistan have to be in this situation again and again? Answer Spending More than income. To cover deficit they have to keep borrowing.
UAE is not an all weather friend, still it went extra mile. It will be very interesting to watch, what the all weather friend China does for CPEC loan payments.
@El Cid yes sometimes loan are necessary but not always as Pakistan do
My name is Javed & I live in London. Gulf native people don't like Pakistanis. I agree with comments. Gulf especially Dubai & Abu Dhabi was built In 60s by Pakistani workers by Engineers Doctors, labours. Emirates Pilots were Pakistanis. They now prefers westerners . That is the fact . Regards Javed.
@L.Ahmad "IK government has embarked on securing loans. Who, how, when and how much will be paid back?" Same way as we have paid back the loans taken by Zardari and the Sharifs. It is not rocket science!!!
Good move.
INDIA-UAE trade like to cross $100 Billion by 2020.
Mr. Qureshi, BUT, Sir, You would have to eventually pay. And, with interest.Defering payments does not solve your problems. It only compounds them.
This is the initial stage, where PTI is trying to meet the economic necessities without a loan. UAE is an old friend whose friendship was strained due to our enemies manipulations. But that will be put right now.
Tell us what you are giving in return. In all these years, i have never come across any Arab giving something for free especially to a Pakistani.
Instead of beginning for oil from Saudi and UAE, why doesn't our government do a barter with Venezuela / Iran where the petrol is free and India is utilizing it at the moment along with China?
Why doesn't the government look into those options?
T@BAXAR That is why we are drowning under debt because we bit more than we could chew.
In 2008, India was $1trillion economy and at $100 oil prices, oil import was 9% of India GDP. In 2018, India is $2.4trn economy and oil import is 5% of country's GDP. By 2023, oil import cost will be less than 3% of it's GDP and its impact would be moderated due to strong growth of India.
By 2023, oil will not be the biggest swing factor for India's economy and oil import cost will have much less influence on it's BOP, INR and inflation. Critics may say what not, the truth is at this rate India is moving towards a stronger and stable economic nation.
Great job! This way we'll have enough time to make Structural changes. As we know, finances take a hit during such changes, so our friends helping us will sway us into calm waters.
@RealKhan : If you observe at Dubai airport, you will find the difference in treatment of our people and indians. many times I had worst experience there. Nobody can deny the fact that we get secondary treatment in emirates. In some sectors like petroleum, finance indians got total domination...