Pakistan to renegotiate Qatar LNG deal amid high costs — report

The picture posted on March 6, 2016 by Qatar Engergy shows Qatargas delivering its first Liquefied Natural Gas (LNG) cargo to Port Qasim, Pakistan. (Qatar Engergy/File)
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Updated 07 February 2025
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Pakistan to renegotiate Qatar LNG deal amid high costs — report

  • Qatar agreement costly, will negotiate better terms next year, petroleum minister tells parliamentary committee 
  • Economic crisis has slashed power use in Pakistan, which gets more than a third of its electricity from natural gas

KARACHI: Pakistan will renegotiate a liquefied natural gas (LNG) supply pact with Qatar, seeking better terms, The News newspaper said on Friday, citing the petroleum minister.

An economic crisis has slashed power use in Pakistan, which gets more than a third of its electricity from natural gas, saddling it with excess capacity it still needs to pay for, under decade-old contracts with independent power producers.

“The Qatar agreement is costly, and we will negotiate better terms next year,” Musadik Malik told a parliamentary committee on energy, the paper added.

Pakistan deferred for a year a deal to buy liquefied natural gas from Qatar and will now receive the contracted LNG cargoes in 2026 instead of 2025, Malik said in December, citing a surplus in LNG.

At the time he said deferring the deal brought no financial penalties, adding that Pakistan deferred five LNG cargoes from Qatar and was negotiating to defer five more with other markets, without disclosing the names of the sellers.

The petroleum ministry did not immediately respond to a Reuters request for comment


Bangladesh flag carrier to launch Dhaka–Karachi flights this month after over 13 years

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Bangladesh flag carrier to launch Dhaka–Karachi flights this month after over 13 years

  • Inaugural flight scheduled to depart from Dhaka to Karachi on Jan, 29, says Biman Bangladesh Airlines spokesperson
  • Airline will operate two weekly flights from the Bangladeshi capital to Pakistan’s commercial hub on Thursdays and Saturdays

ISLAMABAD: Bangladesh’s flag carrier Biman Bangladesh Airlines has announced it will launch direct passenger flights between the cities of Dhaka and Karachi after over 13 years later this month, the airline said on Thursday, as both nations improve historically bitter ties.  

Biman will operate two weekly flights to Karachi, Pakistan’s largest city by population and its commercial hub, on Thursdays and Saturdays, the airline’s spokesperson Boshra Islam told Arab News. 

“Biman is launching its Karachi operations on Thursday, Jan. 29, 2026,” she said, adding that the inaugural flight is scheduled to depart from Dhaka at 8:00 p.m. local time and arrive in Karachi at 11:00 p.m. Pakistan time. 

Pakistan has granted Biman initial permission to operate the route for three months until Mar. 26, according to a spokesperson for the Pakistan Civil Aviation Authority. The approval would be extended later, the official said. 

The restoration of the airline’s flights to Pakistan marks a significant step in restoring direct air connectivity between the two South Asian nations. 

Pakistan and Bangladesh were part of the same country until 1971, when the latter split from the former after a bloody civil war and became the independent state of Bangladesh.  

Ties between both have improved significantly since 2024, after the fall of former Bangladesh PM Sheikh Hasina’s government due to a student-led uprising. Hasina was widely viewed in Pakistan as being close to India and openly critical of Islamabad.  

The resumption of passenger flights comes as aviation and trade links between the two countries begin to recover after decades of limited engagement.  

In November last year, state-owned Pakistan International Airlines (PIA) said it had signed a cargo agreement with Biman Bangladesh Airlines aimed at streamlining air freight operations and boosting bilateral trade.  

A PIA spokesperson said the airlines had entered into a Cargo Interline Special Agreement as part of PIA’s strategy to expand its cargo business and offer more competitive services to customers.  

Pakistan has stepped up efforts to rebuild relations with Bangladesh as ties between Dhaka and New Delhi remain strained over India’s decision to grant asylum to Hasina after she fled the country.  

In February last year, a cargo vessel sailed directly from Pakistan to Bangladesh for the first time in decades and successfully unloaded its containers, port officials said. 

The two countries signed six agreements in August 2025 covering areas such as visa exemptions for diplomatic and official passport holders, trade cooperation, media collaboration and cultural exchanges, officials said.