PSO allowed import of oil from Azerbaijan
Islamabad – (News Alert)
The Economic Coordination Committee (ECC) is reported to have decided that Pakistan State Oil (PSO) oil will import on deferred payment from Azerbaijan without going into a bidding process, believing it will ease some pressure on the dwindling foreign currency reserves of Pakistan.
For decades, Pakistan has been banking on oil imports from Middle Eastern countries, but now energy-rich Central Asian state Azerbaijan is willing to export oil on deferred payment. Initially, Azerbaijan has offered $100 million worth of deferred payment facility, which is extendable without any government guarantee and letter of credit.
Saudi Arabia and the United Arab Emirates (UAE) have also offered oil supply on deferred payment a couple of months ago to help Pakistan stave off pressure on its foreign currency reserves. However, the two Gulf countries want government guarantees before implementing the credit facility.