The crisis-hit nation’s request to purchase liquefied natural gas received a response from a supplier for the first time in more than a year, just two days after Pakistan received final approval to borrow $3 billion from the International Monetary Fund (IMF).
Pakistan tried to buy LNG on the spot market last month for the first time in about a year but failed since no supplier would accept the cash-strapped country’s offer.
According to traders who requested anonymity, according to Bloomberg, Pakistan LNG Limited’s (PLL) offer to buy six shipments for October to December was rejected by all companies.
According to the most recent information, Trafigura Group offered two LNG shipments for delivery from January to February, according to dealers who know the situation.
The move, according to the news source, comes as Pakistan‘s government finances are strengthening. The country received final approval earlier this week to borrow $3 billion from the IMF, opening the door to long-awaited loans that will assist ease its urgent cash need.
Traders estimate that Trafigura’s shipments are priced at a 30% premium to the current rate on the market. Fuel bought on the spot is typically sold at prices that are comparable to market rates.
Pakistan won’t issue the contract until July 31, and it’s still unclear whether the nation will purchase the fuel. LNG providers had been unable to offer spot materials to the country due to credit risk.
IMF transfers SBP $1.2 billion
The State Bank of Pakistan (SBP) account received a $1.2 billion IMF deposit Wednesday, giving the impoverished country renewed hope for economic stability after months of teetering on the verge of default.
The executive board of the global lender approved a $3 billion Stand-By Agreement (SBA) as part of a nine-month program. Last month, Pakistan and the lender came to a staff-level agreement that resulted in a short-term accord and more funding for the 230 million-person crisis-stricken nation than had been expected.
Ishaq Dar, the finance minister, had said earlier that “our foreign exchange reserves will close at around $13-$14 billion on July 14 […] and the SBP will release the exact numbers later on.”