PM Shehbaz Sharif's Qatar deals...at what price?

[MenInG]

The Qatar Investment Authority aims to invest $3 billion in Pakistan, Qatar's Emiri Diwan said on Wednesday, lending support to the South Asian nation's cash-strapped economy.

Pakistan is in economic turmoil and faces a balance of payments crisis, with foreign reserves having dropped as low as $7.8 billion, barely enough for more than a month of imports.

It is also contending with a widening current account deficit, depreciation of the rupee against the US dollar and inflation that hit more than 24 per cent in July.

“The Qatar Investment Authority announced its aspiration to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan,” the Emiri Diwan said, without giving details.

The announcement was made during a visit to Doha by Prime Minister Shehbaz Sharif, who held official talks with Qatari Emir Sheikh Tamim bin Hamad al-Thani on Wednesday after a meeting with the QIA on Tuesday.

“His Highness stressed the importance of the brotherly and strategic relations between the two countries and their aspiration to enhance economic partnership by raising trade exchange and promoting investments through the Qatar Investment Authority,” Emiri Diwan said.

The prime minister's visit to Qatar precedes an International Monetary Fund (IMF) meeting next week that is expected to approve more than $1 billion in financing that has been stalled since the beginning of the year.

PM Shehbaz on Tuesday invited QIA, Qatar's $450 billion sovereign wealth fund, to invest in Pakistan's energy and aviation sectors.

He had previously said he would highlight sectors including renewable energy, food security, industrial and infrastructure development, tourism, and hospitality.

Sources close to the premier have said he was expected to offer Qatar shares in state-owned enterprises including the loss-making Pakistan International Airlines and the Roosevelt Hotel in New York.

Express Tribune

 

[MenInG]

Pakistan is expected to sell shares of the Roosevelt Hotel in New York’s Manhattan to Qatar in return for the Doha investment in the aviation sector, citing sources, ARY News reported on Wednesday.

During Prime Minister Shehbaz Sharif’s visit to Qatar, a massive investment is likely to be made in Pakistan’s aviation sector by Doha. Sources said that Qatar expressed interest in making investments in the airport and hotel sectors.

It was learnt that the federal government will hand over administrative affairs of Islamabad International Airport to Qatar, whereas, a Qatari company will provide the relevant services of the airport’s terminal and cargo.

Sources said that the Qatari government will be given shares of the Roosevelt Hotel in New York’s Manhattan financial centre in return for the investment. The investment will be received through state-to-state agreements between Pakistan and Qatar.

$3 billion investments

Earlier in the day, it emerged that Qatar has agreed to make investments of up to $3 billion in Pakistan as Prime Minister Shehbaz Sharif is currently in the country to cement bilateral ties between the two countries.

Sources closer to Finance Ministry revealed that Qatar will be making immediate investments in multiple sectors in Pakistan.

“The Qatari officials have shown their interest in making investments at Karachi and Islamabad airports,” they said, adding that the Qatari investment authority will ensure bringing investments in the least possible time.

Plan for Qatari investment

Prior to PM Sharif’s Doha visit, the federal authorities prepared a plan to bring Qatari investments to Islamabad airport and Roosevelt hotel in the United States to Qatar.

It was told on August 17 that Qatar may get managerial control to run the Islamabad International Airport while the Pakistan Civil Aviation Authority (PCAA) had vetted the financial, legal and commercial sections of the plan.

The shares and managerial control of the Roosevelt Hotel in the US are also likely to go into the hands of Qatari authorities, it was learnt.

Roosevelt Hotel

The Roosevelt Hotel, established in 1924, is among the historic hotels in the United States and is situated in the luxurious downtown area of Manhattan.

 

[dildilpak]

Pakistan is expected to sell shares of the Roosevelt Hotel in New York’s Manhattan to Qatar in return for the Doha investment in the aviation sector, citing sources, ARY News reported on Wednesday.

During Prime Minister Shehbaz Sharif’s visit to Qatar, a massive investment is likely to be made in Pakistan’s aviation sector by Doha. Sources said that Qatar expressed interest in making investments in the airport and hotel sectors.

It was learnt that the federal government will hand over administrative affairs of Islamabad International Airport to Qatar, whereas, a Qatari company will provide the relevant services of the airport’s terminal and cargo.

Sources said that the Qatari government will be given shares of the Roosevelt Hotel in New York’s Manhattan financial centre in return for the investment. The investment will be received through state-to-state agreements between Pakistan and Qatar.

$3 billion investments

Earlier in the day, it emerged that Qatar has agreed to make investments of up to $3 billion in Pakistan as Prime Minister Shehbaz Sharif is currently in the country to cement bilateral ties between the two countries.

Sources closer to Finance Ministry revealed that Qatar will be making immediate investments in multiple sectors in Pakistan.

“The Qatari officials have shown their interest in making investments at Karachi and Islamabad airports,” they said, adding that the Qatari investment authority will ensure bringing investments in the least possible time.

Plan for Qatari investment

Prior to PM Sharif’s Doha visit, the federal authorities prepared a plan to bring Qatari investments to Islamabad airport and Roosevelt hotel in the United States to Qatar.

It was told on August 17 that Qatar may get managerial control to run the Islamabad International Airport while the Pakistan Civil Aviation Authority (PCAA) had vetted the financial, legal and commercial sections of the plan.

The shares and managerial control of the Roosevelt Hotel in the US are also likely to go into the hands of Qatari authorities, it was learnt.

Roosevelt Hotel

The Roosevelt Hotel, established in 1924, is among the historic hotels in the United States and is situated in the luxurious downtown area of Manhattan.

Not a bad deal at all. Roosevelt hotel is a has been in the NYC scene & given its age, needs massive investment which Pakistan cant provide (pak govt was always planning to sell it but couldnt find buyers for it). We all know the state of Pakistani airports, so contracting out the airport management cant be too bad.

 

[Gayle_Force]

I am not too familiar with the aviation industry but giving managerial and administrative control of your key international airports to a foreign country seems like a bad idea from a strategic perspective.

 

[MenInG]

Former premier and Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan on Wednesday said that Prime Minister Shehbaz Sharif, along with 40 other "thieves", had gone to Qatar for "begging".

"No one will give them money as everyone knows that they [incumbent rulers] are thieves. We have to free Pakistan from these thieves," he said while addressing a rally in Haripur, Khyber-Pakhtunkhwa (K-P).

Imran said that Pakistan was defamed for registering a case with terrorism charges against him. "The imported government has planned to arrest me as if I were a major terrorist."

He said that the Indian government never makes a decision where it sacrifices the lives of its citizens for someone else. "We lost lives of 80,000 Pakistanis for participating in the American war... We will not sacrifice our people for any country for the sake of our foreign policy."

The PTI chief said that when his government tried to buy cheap oil from Russia, they were removed from power via a conspiracy and an "imported government" was imposed upon the nation.

"The nation will never accept them and I will stand for the rights of my nation," he added.

The ousted premier said that PTI leader Shahbaz Gill left his job in the US and came to Pakistan but he was sent to jail. "What did I say that cases were registered against me," he questioned.

He said that the PTI was not against institutions. "We have only one demand and that is to conduct free and transparent elections in the country."

He further said that he is preparing people from all over the country to protest, urging everyone to wait for his call.

 

[MenInG]

I am not too familiar with the aviation industry but giving managerial and administrative control of your key international airports to a foreign country seems like a bad idea from a strategic perspective.

Its fine - remember "beggars cannot be chosers"

 

[cricketjoshila]

Its fine - remember "beggars cannot be chosers"

Actually Qatar is trying to woo away Pakistan from Saudi and UAE. Qatar wants to be the leader of the Muslim world and replace Saudi.

So actually Pakistan can get more fron them.

 

[Gayle_Force]

Its fine - remember "beggars cannot be chosers"

Haha it seems imported hakumat is hell bent on adding fuel to Imran Khans narrative

 

[SalimBhai]

Dont trust the PMLN

 

[MenInG]

KARACHI: The state-owned investment fund of Qatar is going to invest $3 billion in Pakistan, an official statement from the off*ice of the energy-rich country’s ruler said on Wednesday.

The Emiri Diwan, the administrative office of the emir, released the statement as Prime Minister Shehbaz Sharif held official talks with Qatari Emir Sheikh Tamim bin Hamad al-Thani in Doha following a meeting with the sovereign fund officials a day ago.

The $450bn Qatar Investment Authority announced its “aspiration to invest $3bn in various commercial and investment sectors in the Islamic Republic of Pakistan”, it said.

The investment from the Gulf nation is expected to help Pakistan bridge the widening gap between the inflows and outflows of dollars that’s resulting in a persistent balance-of-payments crisis. The dollar shortage has weakened the local currency and caused a drawdown on the central bank-held foreign exchange reserves, which dropped to $7.9bn at the last count.

Speaking to Dawn, Arif Habib Ltd Head of Research Tahir Abbas said the information about the nature of the pledged investment is sketchy at the moment. “I think $2bn will be in the form of safe deposits with the central bank while $1bn will constitute the investment part,” he said.

Earlier this week, State Bank of Pakistan (SBP) Acting Governor Murtaza Syed told analysts in a post-monetary policy briefing that the country would receive $2bn from Qatar in the next 12 months. Although the Qatari statement didn’t mention if the pledged investment was in addition to $2bn indicated by the SBP’s acting chief, analysts believe the two amounts will likely overlap.

International news agency Bloomberg reported Qatar is evaluating strategic investments in Islamabad and Karachi airports in addition to stakes in renewable energy, power and hospitality sectors.

Wire service Reuters said Doha has shown interest in airport management partnership and the Roosevelt Hotel in New York’s Manha*ttan, which is owned by Pakistan International Air*lines (PIA). It quoted officials as saying that Pakistan has offered a 25pc stake in the hotel, which shut down in 2020 because of a coronavirus-related slump in international travel.

However, Mr Abbas said any substantial progress in the matter of investments in PIA and its hotel is unlikely given the mounting political challenges the government faces on the domestic front.

“We were expecting some update on LNG, but there’s been no word on that so far. We get eight cargoes from Qatar every month. We’re looking for two to three additional cargoes on the long-term basis,” he said.

Qatar is a major supplier of LNG to Pakistan on a long-term contract basis. It’s also sponsoring one of the two upcoming LNG terminals in Karachi.

Topline Securities Associate Director of Research Umair Naseer told Dawn it’ll be futile to expect Qatar to provide Pakistan with additional LNG cargoes on a long-term basis.

“Supplies are already constrained. Europe is desperate for energy as the winter is approaching. Even if Qatar offered to sell us LNG on a long-term basis, it’d make little sense for Pakistan to sign up for long-term supplies given the prevailing high prices,” he said.

Meanwhile, a statement from the prime minister’s office on Wednesday said Mr Sharif and Qatar’s emir agreed to increase the bilateral trade, deepen collaboration in agriculture and food sectors and boost cooperation in energy, renewable energy, tourism and hospitality segments. They also agreed to expand cooperation in defence, aviation and maritime sectors.

Recalling Pakistan’s long-term partnership with Qatar in the LNG sector, the prime minister thanked the emir for his support in meeting Pakistan’s energy needs. The two sides also explored new avenues for mutually beneficial cooperation in the energy sector.

Sheikh Tamim reassured Mr Sharif of Qatar’s commitment to forging a stronger economic partnership with Pakistan. The premier thanked the emir for Qatar Investment Authority’s readiness to invest $3bn in various commercial and investment sectors in Pakistan.

Mr Sharif’s visit to Qatar comes ahead of an International Monetary Fund meeting next week that is expected to approve more than $1bn in financing that has been stalled since the beginning of the year. Saudi Arabia and the UAE have also indicated to provide $1bn each in oil purchase financing.

The prime minister on Tuesday invited the Qatar Investment Authority to invest in Pakistan’s energy and aviation sectors. He previously mentioned renewable energy, food security, industrial and infrastructure development, tourism and hospitality among sectors of interest.

Published in Dawn, August 25th, 2022

 

[daytrader]

 

[MenInG]

ISLAMABAD: State Minister for Finance Aisha Ghaus Pasha on Thursday announced that public-owned companies of Qatar plans to run Islamabad and Karachi airports as per an understanding reached between the two sides during a visit of Prime Minister Shehbaz Sharif to Qatar, ARY NEWS reported.

Aisha Ghaus Pasha said that the government was not able to run the public-owned companies and even profitable public companies are suffering losses. “It is important to privatize them to maintain them as profitable institutions,” she said, adding that Qatar has expressed interest in investments in the country.

She lamented that power sector was given more funds than defence during the last fiscal year owing to circular debt in the sector.

A Reuters report Wednesday stated while quoting the Qatari ruler’s office that the Qatar Investment Authority aims to invest $3 billion in Pakistan, lending support to the South Asian nation’s cash-strapped economy.

Pakistan is in economic turmoil and faces a balance of payments crisis, with foreign reserves having dropped as low as $7.8 billion, barely enough for more than a month of imports. It is also contending with a widening current account deficit, weakening rupee currency, and inflation that exceeded 24% in July.

“The Qatar Investment Authority announced its aspiration to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan,” the Emiri Diwan said, without giving details.

The announcement was made during a visit to Doha by Pakistan Prime Minister Shehbaz Sharif, who held official talks with Qatari Emir Sheikh Tamim bin Hamad al-Thani on Wednesday after a meeting with the QIA on Tuesday.

Doha has shown interest in airport management partnership and the Roosevelt Hotel in New York’s Manhattan owned by the Pakistan International Airlines, two Pakistani aviation officials involved in the talks told Reuters.

The officials said Pakistan has offered a 25% stake in the hotel. It shut down in late 2020 during the slump in travel caused by the coronavirus pandemic and has remained closed, in part due to lack of financing and management disputes.

“Qatar has shown interest in taking over terminal and cargo services at Islamabad airport,” one of the officials said, adding other airports, such as Karachi, could also be considered later on.

ARY

 

[MenInG]

After UAE and Qatar, Saudi Arabia on Thursday announced to invest $1 billion in Pakistan to support the country’s economy, the official Saudi Press Agency (SPA) reported.

Saudi King Salman bin Abdulaziz Al Saud had issued directives to invest $1 billion in Pakistan, Saudi state TV added.

The development comes during a telephonic phone call between Saudi FM Prince Faisal bin Farhan bin Abdullah and Foreign Minister Bilawal Bhutto Zardari, where he informed the latter of the King’s directive.

In addition to discussing the strong Saudi-Pakistani relations and ways to boost them, the two leaders also discussed regional and international issues of common interest.

While recalling fraternal bilateral ties between the two countries, FM Bilawal welcomed Saudi Arabia’s commitment of $1 billion investment in Pakistan.

 

[MenInG]

Qatar has not offered immediate provision of $2 billion in cash to Pakistan but renewed its interest in buying the two LNG-fired power plants that Islamabad was initially reluctant to sell without a competitive bidding process.

“Doha seems more interested in making investments in various sectors than offering cash to immediately bail out Islamabad,” a government official said after the three-day visit of Prime Minister Shehbaz Sharif on Thursday.

“After the $3 billion investment commitment by Qatar, there is no funding gap, hence, no immediate requirement for the $2 billion cash,” Finance Minister Miftah Ismail said when contacted.

Last week, the acting State Bank of Pakistan governor had indicated that Qatar might provide $2 billion cash to Pakistan to shore up the foreign exchange reserves.

The International Monetary Fund (IMF) has asked Pakistan to increase the gross official foreign exchange reserves to $16.2 billion by June next year, pointing out a hole of $4.5 billion that has to be filled by securing commitments from the bilateral creditors.

Qatar’s policy of no-cash but investment is in line with the policies that Saudi Arabia and the United Arab Emirates have adopted this time towards Pakistan, breaking the past practice of signing off big loan cheques that Islamabad never paid back.

The king of Saudi Arabia on Thursday also directed to make a $1 billion investment in Pakistan after a similar announcement was made by the UAE a few days ago.

The materialisation of these investments worth $5 billion from the three countries would require a strong commitment from the government of Pakistan, which will also keep it on track to follow the procedure prescribed by the IMF.

Qatar, through its $425 billion sovereign wealth fund, has shown its intent to make $3 billion investment in airports, power plants, port terminals, solar energy and the stock market. However, another aide to the prime minister said that the Qatar Investment Authority was not keen to invest in oil and gas sectors; rather it was more interested in diversifying its investments.

A member of the PM’s delegation said that Qatar again showed its interest in investing in LNG-fired Haveli Bahadur Shah and Baloki power plants. It was not Pakistan that offered the power plants rather the Qatari government showed interest, he added

Last week, the government had decided to shelve the plan to sell these power plants to Qatar due to anticipated low sale price, excluding the liabilities. There was a view that the government might get $500 million to $600 million at best, which was politically difficult to sell to the people as the best price, they added.

The Power Division had also advised the prime minister that determining the price of the plants was not immediately possible and there was a need to hire consultants to complete the transaction.

The National Power Parks Management Company Limited (NPPMCL) owns 1,230 megawatts (MW) Haveli Bahadur Shah and 1,223MW Balloki power plants. These power plants were set up with government funding instead of the 70:30 debt-to-equity ratio. The Ministry of Finance had bought the equity of these power plants a few years ago through the Pakistan Development Fund proceeds.

The government official said that the sale of the Roosevelt Hotel, New York, and the Pakistan International Airlines (PIA) did not come under discussion. The Roosevelt Hotel is owned by the PIA through PIA-Investment Limited. The PIA-IL holds its stakes through a subsidiary which is registered in the British Virgin Islands. The hotel, located at a highly priced location, was closed in December 2020.

But Qatar offered to invest in the Islamabad International Airport and the Jinnah International Airport, Karachi.

The government official said that the materialisation of $3 billion investment by Qatar would depend upon how quickly the issues are being sorted out. He said that PM Shehbaz instructed to set up a monitoring and implementation cell to materialise the investment.

https://tribune.com.pk/story/2373259/qatar-did-not-offer-2b-in-cash

 

[daytrader]

Even our friends have no faith in PDM and aren't trusting them with cash. Could've been a different case with IK at the helm