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Qatar Emir’s successful visit

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Qatar is formulating $3 billion dollars worth of new investments in Pakistan, in the shape of deposits and direct investments. The economic partnership between Qatar and Pakistan will achieve $9 billion. Qatar asserts ambition for further development in the relations between the two countries at all political, economic, sports and cultural grade. The announcement comes a day after Qatar Emir Sheikh Tamim bin Hamad Al Thani finished his visit to Pakistan during which he held a face-to- face meeting with Prime Minister Imran Khan. Delegation- grade talks were also held between the two sides. The prime minister’s adviser on finance, Dr Abdul Hafeez Shaikh, appreciated the Emir for declaring $3 billion in deposits and direct investments for Pakistan and for Qatar’s declaration further develop relations between the two countries. This is the fourth time amiably assistance package of the sort for Pakistan and takes the blended bilateral loans during present fiscal year to more than $12.7billion before Pakistan officially enters an IMF programme early next month for $6billion financing. As far, Saudi Arabia, China and UAE have extended about $9.7billion in loans and cash deposits to Islamabad since present government came to power in August last year. It was not clear whether the Qatari bailout would include cash dep­osit and how much of it will be in the form of investment. The Emir of Qatar concluded his 2-day visit to Islamabad only a day earlier and the concerned authorities were still mediating to complete details that will take some time before they are finished. Subsequently it was also not evident when the Qatari inflows would come. Further Saudi Arabia’s $3billion oil facility promised in October last year is now set to start in July this year at the rate of $375million per month. Two federal ministers had earlier this month announced that the Asian Development Bank is also ready to provide $3.4billion to Pakistan for budgetary support but the Asian Development Bank lending agency withdraw itself from the information very next day. Saudi Arabia agreed to a Pakistani request in October last year to provide a $6billion bailout for example $3billion in safe deposit of the State Bank of Pakistan and $3billion in oil supplies on credit. The $3billion cash had been transferred to the SBP account in three identical monthly installments, but the oil facility has taken longer to be officially triggered. The United Arab Emirates also pledge comparable assistance for Pakistan. $3billion in cash deposit and $3billion oil supplies on deferred payments. The UAE transferred $2billion in cash deposit, but backed away from the oil facility and the final share of $1billion cash deposit.
Pakistan’s oil imports are assessed at about $15billion and the government is attempting to organize half of those requisites through credit facilities. The country’s oil imports during the first 10 months of the present financial year stayed at about $11.9billion, an advancement of 4 percent over the same period last year. Moreover the support from Saudi Arabia and the UAE, the government has designed about $551 million worth of oil and LNG (liquefied natural gas) supplies through the Islamic Trade Finance Corporation. In this regard about $240million worth of letters of credit has recently been opened for import of LNG. China also expanded financial support worth about $4.6billion to Pakistan during the easy going fiscal year through commercial loans and safe deposits. China is levying about 5.5percent mark up on commercial loans and about 1percent mark up on deposits while Saudi Arabia and UAE charge about 3.18 percent interest. The Qatari whole set would generate business opportunities in the country and aid the government in its activation to fascinate foreign investment. This is the initial step to encourage Pak-Qatar relations and the amount would help Pakistan overpower its economic troubles and create job opportunities for young people. Decisions by Qatar to lift the ban on import of Pakistani rice nice news not only for rice exporters but also for the economy. Qatar had also promised to increase quota for Pakistani workers soon. The international community had now started applauding the sacrifices made by Pakistan in the war on terror. Pakistan Army, and the whole nation has made sacrifices since the 9/11 strikes. Prime Minister Imran Khan tried to make the world acknowledge these sacrifices would succeed. The recent visit of the Emir of Qatar was a demonstration of Imran Khan’s successful policies. The prime minister’s efforts had brought Pakistan out of international seclusion. The safeguard given by Qatar regarding investment in Pakistan is a display of the sureness it has in the leadership of Imran Khan. The MoUs related to money laundering, associated offences and terrorism financing, signed between financial information units could aid Pakistan gain more supporters in its efforts to get away the Financial Action Task Force grey list. A large number of Pakistani workers have been in Qatar for years. Pakistan and Qatar enjoy sincere relations but the friendship can achieve new strengths through corporate device like political discussion and joint ministerial committees. Pakistan followed a policy of fine balance when Saudi Arabia and some other Gulf countries imposed an economic barricade on Qatar in June 2017, helping Qatar meet its demand in food and services sectors. Qatar, exports to Qatar rose to $90 million during the period from July 2017 to June 2018, compared to $52 million for the same period in 2016. The previous year, however, saw a tremendous enhancement in export of services to Qatar. Between July 1, 2018 and April 30, 2019, exports of goods and services amounted to $146.457 million compared to $96.138 million in the corresponding period the previous year. 700 to 800 Qatari-Pakistani companies are working in infrastructure development in Qatar. Qatar’s liquefied natural gas contract help it to meet its energy demand. The Gulf region is filling with tensions and Qatar and Pakistan can help both sides avoid a dangerous increase. Pakistan should play its vital role to bring Qatar and Saudi Arabia.