Saudis likely to bailout Sharif government

SAUDI PAKISTAN

Saudi Arabia is expected to extend a bailout package of about $15 billion to Pakistan’s highly indebted energy sector by supplying crude and furnace oil on deferred payment to enable it to resolve the chronic circular debt issue.

A senior government official said the Saudis had been taking reasonable interest in helping out the incoming PML-N government led by Nawaz Sharif.

According to the official, as soon as the PML-N emerged as the majority party after the May 11 elections, the Saudi ambassador in Islamabad sought a briefing on the country’s oil requirements from the foreign ministry before calling on prime minister-designate Nawaz Sharif in Raiwind, Lahore.

He was immediately provided a position paper, the official said.

Pakistan expects about 100,000 barrels of crude oil and about 15,000 tons of furnace oil per day from Saudi Arabia on deferred payment for three years. The amount involved works out at about $12-15bn.

The facility can be utilised to reduce loadshedding in the short term and provide an opportunity in the medium term to restructure the power sector by minimising subsidies, eliminating circular debt, ensuring recovery from the public sector and reducing system losses to bring it to a self-sustainable level.

The official said a request had already been passed on through the Pakistan-Saudi Arabia Joint Ministerial Commission. A meeting of the commission could be convened soon after the new government assumed charge, an official said.

The Saudi rulers had not taken any interest in the issue earlier ostensibly because of the chill in their relationship with the PPP government.

For the entire report, please see http://beta.dawn.com/news/1013070/15-billion-saudi-bailout-likely

 



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26 Comments

  1. A Reader @TrSp said:

    Can all Pakistanis thank the Saudi Government and people of Kingdom of Saudi Arabia. JazakAllah Shukrun.

    Can those anchors who sit and use an unfavorable language for the Kingdom of Saudi Arabia mend their ways and thank the Saudi Government.

    Can the Judiciary (not NAB) keep an eye on the government which will be sworn in shortly?

    I have seen a number of Prime Ministers come and go in the UK but none could afford to buy properties where are ex PMs and soon to be ex-President did.

    Dr M Ahmad
    UK

    • Anon said:

      .
      Looks like you claim to have seen a lot …
      Perhaps not — your vision is blocked by big Saud posterior close on your face …
      .

  2. Amir said:

    Well, the corrupt Saudis already had enough control of the Pakistani politics and this deal will give them leverage to meddle in the country's affairs even more. With this deal in place, how could the Pakistani government tell the Saudi's and the other ME countries not to fund the jihadi organizations in Pakistan to promote their own agenda.

    • Akbar said:

      What a sad comment. This man does not have a clue what is he on about. First you vote incompetent people in power and then make these silly statements which I condemn.

      • salman said:

        @ Mr A Reader & Akbar, I believe you both don’t have a clue why we keep getting these incompetent people and why our society has become intolerant since Saudi charity is doled to our puppet leaders. Your mindset is reflective of people who live in KS.

  3. Akbar said:

    What a sad comment. This man does not have a clue what is he on about. First you vote incompetent people in power and then make these silly statements which I condemn. –

    • Lazim said:

      Terrorism is not related to incompetent govt but it s related to military govts and Saudi funding to jihadi elements. Dont distort this issue.

  4. Ibrahim Janjuarajput said:

    People and Saudi Royal has always considered Pakistan as brotherly lengthy arm, ready to help in all aspects. Nawaz Sharif as Prime Minister of Pakistan and special relations to Saudi Royal family is in a position to get maximum help to get Islamic of Pakistan out of dark period of recession. We need desperately solution of energy crisis and People of Pakistan posses dedicated workforce and investers and I believe taking out from American imposed war on terror is going to give us golden upportunity to develop our own economy and Islamic values.

    • Saloveshan said:

      Saudi Royals doesnt have any brotherly relation with any one, today its all about my benefit , As long as you serve and slave their interest they will feed you like dogs, as long as we allow external powers to meddle our lives through their petro dollars we will keep getting Moron leaders who are easly bought out to serve their Royal or US masters.

  5. Ismail umer said:

    Oil can never eliminate da deficite of power. Its da most expensive source of electricity . Instead of having $12 billion oil from saudia govmt should instead built kala bagh dam which needs only $10 B and will produce da cheapest electricity.
    Our main industry issue is da cost and through oil we cannot produce cheap electricity !!!

  6. tahir said:

    $15 is very less as; they should do more because Pakistan is now a branch of Royal family saudi

  7. Meraj Din said:

    There you go again. Salfi Islam will never go away. It has entangled Pakistan. Saudis know how to pick up a facilitator.

  8. Pakistani said:

    Let us be clear on one thing,Saudis are no friends to any country but they have friends in most countries purely on financial or business basis.In Pakistan Nawaz Sharif and Kayani are the current favs.They have damaged Muslims of Middle East more than the Jews.They have hired a very sophisticated Security Agency called USA,to protect their lifestyle and money.

  9. Shakil Khokhar said:

    Why I am not surprised, first install own stooge and then pretend to help his country, and its deferred payment not free and its all business! The real benefit Nawaz can get from his masters to make them invest in Pakistan dam projects and wave off Pakistan debts, which is no no as they want Pakistan to be slave and rely on expensive imported oil!

  10. Tariq said:

    Shahbaz Shareef in his speeches said so many times that we will not beg and we don’t like help from “aghyar” but now they will be doing opposite.

  11. Momin said:

    What about the money of these brothers? when they will use?

  12. Khalid Rahim said:

    We are interested if Nawaz Sharif can bail us out of Saudi hegemony as Prime Minister of Pakistan. If the Saudis want to bail him out of the Iranian Gas Pipeline and Gwadhar Port
    that is a serious matter about our National Integrity of which he perhaps has little clue!

    • Anon said:

      .
      He is not a dumb fellow …
      He knows what it is …
      .

  13. desi said:

    Its all about what they want in return,there are no friends,190 million will give them a heck of a return.Does anyone think the Chinese are Pakistan's friends??? They just want the bigger piece of the pie.Saudis will give you $15 billion with a catch.But the important issue is that are the Pakistani leaders going to become leaders or followers after that,are they going to do whats best for their country or whats best for these Saudis or Chinese???

  14. SHB said:

    This is regarding Amir’s comment.
    If any other country is helping Pakistan regarding energy crisis by giving oil on deferred payment, we should be thankful for this gesture.
    If Amir has some better option, he should put it on the table instead of criticizing the Saudi govt. May be Mr Amir likes to live in Stone Age .

    • Amir said:

      @SHB,
      You need to look at what you are giving up in response to that "favor" from a so-called friendly country. Let's take a look at these Saudies. They provide funds to all the Jihadi outfits in Pakistan in order to promote to their brand of religion, which is Wahabi-ism. They supported Zia for all those years when he was propping up religious fanatics which has not become a monster.
      I understand the energy shortage but there are other ways to solve it and one simple way is to collect tax revenue from all those affluent people,like the Sharifs, the Zardaris, etc., who do not pay their fair share of taxes and then use that money to buy electricity. This way, you will not be gatting favour from anyone in return of your sovereignty.

    • Anon said:

      .
      Take your pick: "Stone Age" or "Slave Age" …
      .
      Or should I say "A polyester coated beggar's life' …
      .

  15. AAMIR said:

    SAUDI,S ARE THE BIGGEST INTRUDER IN OUR NATION INTEREST ,THEY ARE FUNDING TO THOSE RELIGIOUS OUTFITS IN PAKISTAN TO PROMOTE THEIR SO CALLED BRAND RELIGION AND THEY ARE THE BIGGEST RESPONSIBLE IN SECTARIANS KILLING IN PAKISTAN

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