21 trucks of LPG from Uzbekistan and Turkmenistan reach Pakistan via Afghanistan

Trucks carrying liquefied petroleum gas (LPG) enter Pakistani territory through the Torkham crossing at the Pakistan-Afghan border on June 14, 2023. (Photo courtesy: Customs Office Torkham)
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Updated 14 June 2023
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21 trucks of LPG from Uzbekistan and Turkmenistan reach Pakistan via Afghanistan

  • Trucks reached Pakistan through Torkham border between Pakistan and Afghanistan in Khyber Pakhtunkhwa province
  • LPG orders started arriving just days after the first cargo of discounted Russian crude oil arrived in Karachi

PESHAWAR: A consignment of 21 trucks carrying liquefied petroleum gas (LPG) from Uzbekistan and Turkmenistan have reached Pakistan through Torkham, a border crossing between Pakistan and Afghanistan in the northwestern Khyber Pakhtunkhwa province, a Pakistani customs official said on Wednesday.

The LPG orders started arriving just days after the first cargo of discounted Russian crude oil arranged under a new deal struck between Islamabad and Moscow arrived in Karachi on Sunday.

“At least 21 trucks have entered (Pakistan) so far,” Hammad Ali, a senior official at the Customs Department at the Torkham border, told Arab News, saying six of the trucks came from Uzbekistan and three containers arrived from Turkmenistan.

Goods Declarations (GDs) for the rest of the vehicles had not been filed yet, Ali said.

“Customs is waiting for the documents to be completed by the importers. Hopefully some consignments will be cleared today.”

Zarqeeb Shinwari, a Pakistani custom clearing agent at the Torkham border, said 15 LPG containers were parked at his terminal.

“Two or three tankers containing LPG have been entering the Pakistani side of the border on a daily basis since last one week. Custom clearing process is completed but some drivers of the trucks are said to have visa and travel documents’ issues, which could be resolved in a day or two,” Shinwari said.

A senior official at Epic Energy, a Lahore-based private Limited company engaged in the bulk supply of LPG and LPG transportation across Pakistan, said his company had imported ten tankers of LPG from Uzbekistan, which were pending custom clearing at the Torkham border. He declined to be named.

“We have imported ten containers with 5,000 metric tons LPG from Uzbekistan … We also have an arrangement with Turkmenistan to import another 5,000 LPG very soon. And importing of 10,000 metric tons LPG from Russia is in pipeline, which will soon be imported after clearing modalities,” the official said.

Asked when the Russian LPG was expected to arrive in Pakistan, he said: “I think it will come in due time as well.”

Irfan Khokar, chairman of the LPG Distributors Association, said the flow of LPG into Pakistan had now started via the shortest route, Afghanistan, which would stabilize its prices in the country.

“The flow of LPG imports into Pakistan has started primarily from central Asian states such as Uzbekistan and Turkmenistan. At a later stage, LPG can be imported from Russia also,” he added.
 


IMF Executive Board to review $1.2 billion loan disbursement for Pakistan today

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IMF Executive Board to review $1.2 billion loan disbursement for Pakistan today

  • Pakistan, IMF reached a Staff-Level Agreement in October for second review of $7 billion Extended Fund, climate fund program
  • Economists view IMF bailout packages as essential for cash-strapped Pakistan grappling with a prolonged macroeconomic crisis

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) is set to meet in Washington today to review a $1.2 billion loan disbursement for Pakistan, state media reported on Monday.

Pakistan and the IMF reached a Staff-Level Agreement (SLA) in October for the second review of a $7 billion Extended Fund Facility (EFF) and the first review of its $1.4 billion Resilience and Sustainability Facility (RSF). 

The agreement between the two sides took place after an IMF mission, led by the international lender’s representative Iva Petrova, held discussions with Pakistani authorities during a Sept. 24–Oct. 8 visit to Karachi, Islamabad and Washington D.C.

“The International Monetary Fund’s (IMF) Executive Board is set to meet in Washington today to review and approve $1.2 billion in loan for Pakistan,” state broadcaster Pakistan TV reported. 

Pakistan has been grappling with a prolonged macroeconomic crisis that has drained its financial resources and triggered a balance of payments crisis for the past couple of years. Islamabad, however, has reported some financial gains since 2022, which include recording a surplus in its current account and bringing inflation down considerably.

Economists view the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders including the IMF, World Bank, Asian Development Bank and Islamic Development Bank. 

Speaking to Arab News last month, Pakistan’s former finance adviser Khaqan Najeeb said the $1.2 billion disbursement will further stabilize Pakistan’s near-term external position and unlock additional official inflows.

“Continued engagement also reinforces macro stability, as reflected in recent improvements in inflation, the current account, and reserve buffers,” Najeeb said.

Pakistan came close to sovereign default in mid-2023, when foreign exchange reserves fell below three weeks of import cover, inflation surged to a record 38% in May, and the country struggled to secure external financing after delays in its IMF program. Fuel shortages, import restrictions, and a rapidly depreciating rupee added to the pressure, while ratings agencies downgraded Pakistan’s debt and warned of heightened default risk.

The crisis eased only after Pakistan reached a last-minute Stand-By Arrangement with the IMF in June 2023, unlocking emergency support and preventing an immediate default.