Islamic Republic of Pakistan : News, Discussions & Updates

Global banks stop trade credit for oil imports by Pakistani firms

KARACHI: Foreign banks have stopped offering trade credit for oil imports to Pakistani refineries, and some suppliers are seeking payment upfront to avoid potential problems resulting from political standoff in the country, industry sources said on Wednesday.

They said politically-tense Pakistan is likely to face fuel shortages in days to come as international banks have refused to confirm letter of credits (LCs) for oil import orders citing “high country risk” alert.

For the import of crude oil from the global market, LCs are opened by the local banks. However international banks confirm the LCs of local paretners to provide guarantee to the exporter. Under the guarantee if a Pakistani bank defaults on a payment to an exporter, its international counterpart pays the amount.

“The political unrest has increased the country’s risk in the eyes of international banks and they are reluctant to confirm LCs,” a source in the oil sector told The News.

Global banks stop trade credit for oil imports by Pakistani firms

KARACHI: Foreign banks have stopped offering trade credit for oil imports to Pakistani refineries, and some suppliers are seeking payment upfront to avoid potential problems resulting from political...
www.thenews.com.pk

There goes credit for crude oil. Default is unavoidable now for Pakhanistan... 😊😊😅😅
 
lcafanboy said:
Global banks stop trade credit for oil imports by Pakistani firms

KARACHI: Foreign banks have stopped offering trade credit for oil imports to Pakistani refineries, and some suppliers are seeking payment upfront to avoid potential problems resulting from political standoff in the country, industry sources said on Wednesday.

They said politically-tense Pakistan is likely to face fuel shortages in days to come as international banks have refused to confirm letter of credits (LCs) for oil import orders citing “high country risk” alert.

For the import of crude oil from the global market, LCs are opened by the local banks. However international banks confirm the LCs of local paretners to provide guarantee to the exporter. Under the guarantee if a Pakistani bank defaults on a payment to an exporter, its international counterpart pays the amount.

“The political unrest has increased the country’s risk in the eyes of international banks and they are reluctant to confirm LCs,” a source in the oil sector told The News.

Global banks stop trade credit for oil imports by Pakistani firms

KARACHI: Foreign banks have stopped offering trade credit for oil imports to Pakistani refineries, and some suppliers are seeking payment upfront to avoid potential problems resulting from political...
www.thenews.com.pk

There goes credit for crude oil. Default is unavoidable now for Pakhanistan... 😊😊😅😅
Click to expand...

They are busy with Yasin Mallik’s 10 year imprisonment.

Seems that old rhetorical poem “Kashmir toh hoga lekin Paxtan nahi hoga” was somewhat true 😂
 
  • Agree
Reactions: lcafanboy

Pakistan Says Saudi Arabia, Dubai Won’t Lend Without IMF Deal​

Pakistan’s finance minister said countries that have typically been generous in lending to the crisis-hit nation are proceeding more cautiously now.

“We went to Saudi Arabia, Dubai and spoken to other countries -- they are ready to give money, but all of them say we need to go to the IMF first,” said the minister, Miftah Ismail, on May 28.

That’s a pivot from the past. When Pakistan went through a similar economic crisis in 2018, the nation was able to secure backing from China, Saudi Arabia and the UAE before going to the International Monetary Fund. Now, China has yet to follow through with a pledge to re-issue loans to Pakistan repaid in late March.

Pakistan’s economic risk score is currently at the lowest level since Bloomberg started compiling data in 2009. The nation’s foreign exchange reserves have halved in less than a year and the rupee has dropped by almost 8% in the past month. That makes it the worst performer in Asia, according to data from 13 nations compiled by Bloomberg.

China’s Asian Infrastructure Investment Bank, which was created to compete with other global funders, has also aligned itself with the lenders, telling Pakistan that if the World Bank gives money, then so will it, according to Ismail.
www.bloomberg.com

Pakistan Says Saudi Arabia, Dubai Won’t Lend Without IMF Deal

Pakistan’s finance minister said countries that have typically been generous in lending to the crisis-hit nation are proceeding more cautiously now.
www.bloomberg.com www.bloomberg.com
 
Just went through Bhramos strike @ chian manoo @ other forum and clicked reactions right & left.. It was really funny.. 🤪
 
Sathya said:
Just went through Bhramos strike @ chian manoo @ other forum and clicked reactions right & left.. It was really funny.. 🤪
Click to expand...
Even funnier is the failure of India of having any control on their own top tier cruise missile 🤣.
Which other country gets accidental firing of a missile on another country?
Only in India 😅😅
There's a "muhavraa" saying.
Bundar kay haath mein bandooq.
You never know when and where he will fire , including up his own rear end 😅😅😅

We have a video of Indian Brahmos battalion.

 
Last edited:
  • Haha
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