Islamabad: The government has called a meeting of the Economic Coordination Committee (ECC) of the Cabinet Tomorrow (Tuesday) to approve an agreement with Azerbaijan for fuel supply on credit take immediate measures to prevent the rise in urea prices.
Finance Minister Asad Umer will preside the meeting of ECC and would review the status report on export of the Public Sector, wheat stocks, funds and payments that are due on Pakistan Machine Tool Factory. The allocation of additional amount of gas production from the Adhi gas field to the Sui Northern Gas Pipelines Limited will also be discussed.
Sources informed that Azerbaijan had offered to give petroleum products to the Pakistan State Oil (PSO) through the State Oil Company of Azerbaijan Republic (SOCAR) on credit under a very long-term agreement.
The two petroleum companies entered into an inter-governmental agreement (IGA) in February 2017 for supply of a number of oil and gas products, including furnace oil, petrol, diesel and liquefied natural gas (LNG). The PSO and SOCAR are now extending the agreement to a greater expect which will now include the supply of motor gasoline (petrol) against a 4-6 month credit facility of $100-150 million.
Economic Corporation Committee will also discuss on the urea prices as to how they can be stopped from rising.
Experts have said that demand of Oil has increased in Pakisatn over past few years as the LNG imports are streamlined.
Pakistan has been seeking oil supplies on credit payments from two major sources — Saudi Arabia and the United Arab Emirates — and it managed to secure $3 billion from each country.