Afia Ambreen
Pakistan shares warm and cordial relations with Qatar as well as excellent brotherly ties. On matters pertaining to regional and global affairs both Countries have always been on the same page. Pakistan places considerable importance on its relation with Qatar which is based on strong foundations of common faith and culture. Recently, Emir of Qatar Sheikh Tamim bin Hamad Al-Thani has arrived on a two days official visit to Pakistan.
Sheikh Tamim bin Hamad Al-Thani was given a red carpet treatment and 21-gun salute on arrival at the Noor Khan airbase. Pakistan and Qatar inked three significant agreements, including the one sharing financial intelligence and checking money laundering and terror financing. It is being viewed as an important development in the bilateral ties.
The memorandums of understanding (MoUs) were signed in the presence of Prime Minister Imran Khan and visiting Emir of Qatar Sheikh Tamim bin Hamad Al-Thani at the Prime Minister’s House following the bilateral talks.
It is important to note that Prime Minister Imran Khan also visited Qatar in January 2019. Apart from meeting high level dignitaries at state level, Prime Minister Imran Khan also talked to the business and investment community based in Doha.
Embarked on the mission to attract investment from foreigners, the Prime Minister addressed the Pakistani community during the visit inviting them to invest more in the country.
Prior to this high level visit Foreign Minister Shah Mehmood Qureshi and General Qamar Javed Bajwa made exclusive visits to Qatar on different occasions with diverse motivations which included talks with Taliban, lasting peace in Afghanistan and strategic and military ties with Qatar.
These high level visits reflect the significance the two countries attach to each other. Pakistan is trying to maintain a balance in the gulf regional political dynamics keeping in view its interest but though it is tough and challenging, it is necessary for Pakistan to keep its neutrality intact.
Moreover, Pakistan and Qatar have signed a worth $16 billion deal of Liquefied Natural Gas (LNG) for a period of 15 years. Pakistan has been suffering through a severe energy crisis and the import of LNG from Qatar would be a positive step to address the issue.
The deal has large prospects for the energy sector as Pakistan would be able to meet its energy requirements. 3.75 million tons of LNG would be imported annually on a government-to-government basis, at comparative rates. The price agreed for each LNG cargo discharged per month is 13.37pc of Brent value which is cheaper than the gas to be imported through pipelines projects including Iran-Pakistan (IP) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) projects.
In the first phase, from 2016 to first quarter of 2017, the annual contract LNG quantity would be prorate of 2.25m tons which would be increased to 3.75m tons per annum beginning second quarter of 2017. The long-term agreement would also provide for annual upward and downward flexibilities of up to three LNG cargoes against the two earlier agreed upon per contract year.
The LNG deal would also provide the LNG to Pakistan on 15-day defer payment against the earlier settlement of defer payment for 10 days. According to the agreement, the cost of imported gas is estimated to be $4.78 per mmbtu, lower than the Qatar’s current rate of $5.35 mmbtu and the cheapest in its kind in South Asia.
Trade Volume has multiplied between Pakistan and Qatar as a result of the LNG supply agreement. Major items of export from Pakistan to Qatar include rice, leather, textile, rags, cotton yarn, woven fabric, meat etc. Conversely major items of import from Qatar are petroleum, plastic, organic chemicals, and iron etc.
The five main mutual sectors of investment are banking, insurance and services sector which include tourism, IT, telecommunication, oil and gas. Pakistan’s investment in Qatar is mainly in real estate, construction machinery and technical services industry. Pakistani Business men and professionals are playing a major role in banking, medical and construction sectors of Qatar. Recently an agreement has been reached to increase the Number of Pakistani blue collar workers in Qatar to 100,000.
The Government of Qatar and Pakistan enjoy an exceptionally cordial relation and intend to widen cooperation in economic, defence and political sectors to ensure mutual growth and benefit.
Pakistan possesses vast resources and an incredible investment potential. Qatari business groups/companies should partake in the privatization process of Pakistan as well as focus on investment opportunities in the fields of livestock and dairy.
Governments of both countries are determined to promote bilateral relations on a broader front.
