Visit is scheduled ahead of the IMF meeting next Wednesday, where it is expected that Islamabad will approve a $1.2bn tranche.
According to his office and his aides, Shehbaz Sharif, Pakistan Prime Minister, has traveled to Qatar in order to generate trade and investment for his cash-strapped nation.
“I will highlight the exciting investment opportunities in Pakistan’s various sectors such as renewable energy, food security, industrial and infrastructure development, tourism and hospitality,” Sharif said in a statement on Tuesday before setting off.
The 220 million-strong South Asian nation is currently in financial turmoil and has a balance of payments crisis.
Foreign reserves have dropped to $7.8bn, barely enough for more than one month of imports. There has been a historical depreciation in the rupee against US dollars and 24.9 percent inflation recorded in July.
The visit comes ahead of an International Monetary Fund meeting next week, where it is expected that the IMF will approve a $1.2bn tranche loan. This has been in limbo since the beginning of this year.
In a statement shared with Al Jazeera, the Pakistani ministry of foreign affairs said it as Sharif’s first visit to Qatar since assuming office in April this year.
“During the visit, the Prime Minister will hold in-depth consultations with the Qatari leadership. The two sides will review the entire spectrum of bilateral relations, with a particular focus on advancing energy-related cooperation, deepening trade and investment ties, and exploring greater employment opportunities for Pakistanis in Qatar,” it said.
“Qatar is home to more than 200,000 Pakistanis, who are contributing to the progress, prosperity and economic development of the two brotherly countries.”
According to the statement, Sharif will also visit Stadium 974, Doha, where he will be briefed about the preparations by Qatar for the FIFA World Cup.
Reports earlier on Tuesday said Pakistan’s cabinet has approved a draft agreement that allows the government to provide troops for security at the sporting event.
Two sources close enough to Sharif stated to Reuters that Sharif was also expected offer Qatar shares in state-owned companies like the loss-making Pakistan International Airlines in Pakistan and its Roosevelt Hotel, New York.
He was also expected to offer the opportunity to manage Pakistan’s airports and hoped to secure energy deals, they said.
“The trip is significant enough to merit a personal trip by the prime minister himself,” Khurram Husain, analyst and editor of Profit magazine, told Al Jazeera.
“The details of what exactly will be discussed are scant. We know that for Pakistan, it is about dollars… We also know there is a pledge of about a billion [US]Dollar in assistance, but it is unclear what form this assistance will take.
“However, what is clear at this point is that Pakistan badly needs commitment of this sort in order to get the IMF programme past executive board for approval which is scheduled for August 29.”
Pakistan, a major importer from Qatar of liquefied natural gases (LNG), also hoped to obtain a deferred payments plan for LNG purchased under long-term agreements.
Two long-term LNG supply agreements with Qatar have been signed by Pakistan. These deals will allow Pakistan to transport up to nine cargoes per month.
“We will surely seek any facility of deferred payments on our LNG deals,” said an aide to Sharif, adding that Pakistan was also seeking support for its foreign reserves to the tune of $2bn.
Read the full article here
