ISLAMABAD: Pakistan signed a framework agreement with Azerbaijan to procure liquefied natural gas (LNG) on flexible terms. The agreement was signed between Pakistan LNG Limited and Azeri Company SOCAR in Lahore, in the presence of Prime Minister Shehbaz Sharif.
Under the agreement, Azerbaijan will offer one cargo of LNG per month to Pakistan. More importantly, it will be Pakistan’s decision to accept the cargo or not. The agreement’s initial duration is one year, with the possibility of an extension for another year. Importantly, Pakistan will not face any financial penalty if it chooses not to accept the LNG cargo.
Prime Minister Shehbaz Sharif hailed the agreement as a significant milestone in the fraternal relations between Pakistan and Azerbaijan.
Furthermore, the Prime Minister announced that an Azeri delegation of horticulture experts is arriving in Pakistan on his invitation. Pakistan seeks to learn from their expertise to enhance the landscapes of Karachi, Peshawar, Quetta, and Lahore.
Prime Minister Shehbaz Sharif also addressed the recent increase in power tariffs. He clarified that it was carried out as part of an agreement with the International Monetary Fund (IMF). However, he assured that about sixty-three percent of domestic consumers would not be burdened by the increase, and partial subsidies have been granted to thirty-one percent of the consumers.
The Ambassador of Azerbaijan emphasized that the two countries are strengthening their cooperation in various fields, including energy, defense, IT, and transport. Additionally, both sides are negotiating a preferential trade agreement, and he expressed confidence in its success. This highlights the deepening ties and mutual cooperation between Pakistan and Azerbaijan in multiple sectors.
