ISLAMABAD: Pakistani conglomerate Engro Corp. Ltd. said on Friday it had “no obligation” to renegotiate a contract with the government for imported liquefied natural gas (LNG), a day after the new petroleum minister said it would seek new terms.
A spokesman for Engro said the total contract, to process and supply up to 600 million cubic feet of LNG per day for 15 years, is currently worth about $228,000 per day or about $83 million per year.
Engro’s stance sets up a potential conflict with the new government of Prime Minister Imran Khan, who has promised to scrutinize for corruption all deals made by the previous administration of ousted premier Nawaz Sharif.
Engro said in a statement that 2013 bidding for its Karachi terminal, Pakistan’s first, was done in an “auditable and transparent” tender process. The terminal came into operation in 2015.
“The government does not have a contractual right to reopen/renegotiate its terms and we are accordingly under no obligation to renegotiate the same,” the firm said in a statement. It also said the government was miscalculating its net profits from the venture.
Petroleum Minister Ghulam Sarwar Khan said on Thursday that the government would seek to renegotiate two LNG terminal deals, saying the previous government had agreed to pay too much.
He cited a contractual clause allowing for renegotiation with mutual consent but hinted the government would take other action if Engro refused.
“If they don’t come to renegotiation, then the further remedies that exist, we will definitely avail them,” the minister said.
He did not name the company involved in the second LNG contract. It was unclear whether he was speaking of Pakistan’s other completed terminal or one of several new ones planned.
The rapid adoption of LNG infrastructure has made Pakistan one of the industry’s fastest-growing markets in Asia, sparking interest from the world’s major energy producers and traders.
It also helped ease electricity outages of up to 12 hours per day that had crippled industry and disrupted daily life for the population of 208 million people.
Prime Minister Khan, however, is scrutinizing the deals. While in opposition, the former cricket star spearheaded a campaign accusing Sharif of corruption that led to the Supreme Court removing him from office last year.
Sharif was convicted by an anti-corruption court and sentenced to 10 years in prison in July, just ahead of elections won by Khan.
The three-time premier denies wrongdoing.
Sharif’s former petroleum minister, Shahid Khaqan Abbasi, who became prime minister after Sharif was ousted, is also under investigation by the state anti-corruption body over an unnamed LNG deal. Abbasi has denied any wrongdoing.
Pakistan’s Engro says “no obligation” to renegotiate LNG contract
Pakistan’s Engro says “no obligation” to renegotiate LNG contract
- A spokesman for Engro said the total contract, to process and supply up to 600 million cubic feet of LNG per day for 15 years, is currently worth about $228,000 per day or about $83 million per year
- The rapid adoption of LNG infrastructure has made Pakistan one of the industry’s fastest-growing markets in Asia, sparking interest from the world’s major energy producers and traders
Pakistani, Bangladeshi officials discuss trade, investment and aviation as ties thaw
- Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war
- Ties between Pakistan, Bangladesh have warmed up since last year and both nations have resumed sea trade
ISLAMABAD: Pakistan's High Commissioner to Bangladesh Imran Haider on Sunday met Chief Adviser Muhammad Yunus in Dhaka, the latter's office said on, with the two figures discussing trade, investment and aviation.
Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.
Ties between Pakistan and Bangladesh have warmed up since former prime minister Sheikh Hasina’s ouster as a result of a student-led uprising in August 2024. Relations remain frosty between Dhaka and New Delhi over India’s decision to grant asylum to Hasina.
Pakistan has attempted to forge closer ties with Bangladesh in recent months and both South Asian nations last year began sea trade, followed by efforts to expand government-to-government commerce.
"During the meeting, both sides discussed ways to expand cooperation in trade, investment, and aviation as well as scaling up cultural, educational and medical exchanges to further strengthen bilateral relations between the two South Asian nations," Yunus's office said in a statement on X.
In 2023-24 Pakistan exported goods worth $661 million to Bangladesh, while its imports were only $57 million, according to the Trade Development Authority of Pakistan. In Aug. this year, the Pakistani and Bangladeshi commerce ministries signed a memorandum of understanding to establish a Joint Working Group on Trade, aiming to raise their bilateral trade volume to $1 billion in the financial year that began in July.
The Pakistani high commissioner noted that bilateral trade has recorded a 20 percent growth compared to last year, with business communities from both countries actively exploring new investment opportunities, according to the statement.
He highlighted a significant increase in cultural exchanges, adding that Bangladeshi students have shown strong interest in higher education opportunities in Pakistan, particularly in medical sciences, nanotechnology, and artificial intelligence. Haider also said that Dhaka-Karachi direct flights are expected to start in January.
"Chief Adviser Professor Muhammad Yunus welcomed the growing interactions between the two countries and emphasized the importance of increased visits as well as cultural, educational and people-to-people exchanges among SAARC (South Asian Association for Regional Cooperation) member states," the statement read.
"Professor Yunus also underscored the need to further boost Bangladesh–Pakistan trade and expressed hope that during Mr. Haider’s tenure, both countries would explore new avenues for investment and joint venture businesses."
