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OmaR UK
Pakistan to ask Saudis to defer payments

By Farhan Bokhani in Islamabad

Published: June 6 2008 22:03 | Last updated: June 6 2008 22:03

Pakistan is to ask Saudi Arabia if it can defer paying for oil imports worth $2bn as it grapples with a deteriorating economic situation fuelled by global crude prices.

Yusuf Raza Gilani, the newly elected prime minister, was due to arrive in the desert kingdom Friday night to perform umrah

Mr Gilani was expected to push Pakistan’s request in meetings with Saudi government leaders including King Abdullah, the Saudi monarch, a senior government official told the Financial Times.

The government will reveal its budget on Wednesday, a day later than planned as a result of Mr Gilani’s visit to Saudi Arabia.

Western economists have warned that Pakistan would have to raise domestic oil prices if it wanted to qualify for a crucial World Bank loan of $500m that is under discussion.

Independent economists say that, while the World Bank’s loan would be a modest amount for Pakistan, it would allow it to seek commercial loans. But the World Bank is urging Pakistan to withdraw subsidies from local oil consumers – and ending subsidies would be a very unpopular step by a government whose future is uncertain.

The administration has already warned that expenditure cuts would be essential to reduce the budget deficit. “If Saudi Arabia comes to Pakistan’s rescue at this difficult time, that would make a huge difference,” said one western economist.

Saudi Arabia allowed Pakistan to defer payments on oil imports after Pakistan carried out its maiden nuclear tests in 1998.
Tamerlane
PM lands in Medina with $6 bn wish list

Saturday, June 07, 2008
Package includes, free oil, wheat supplies; Saudis being offered agricultural land; PM urges Punjab govt to deftly handle long march

By Rauf Klasra

MEDINA: Prime Minister Yousuf Raza Gilani arrived here on Saturday with comprehensive plans to request the Saudi government for aid ranging between three to six billion US dollars in oil, energy, trade and agriculture sectors.

Informed sources on the PM’s special plane, carrying 80 guests of the Saudi government, including five federal ministers, said the package being envisaged includes free oil and lavish provision of wheat supplies by Saudi Arabia, now said to have abundant food supplies.

In return, the sources said, the prime minister, who would be joined by PPP Co-chairman Asif Ali Zardari on Sunday, would offer the Saudis hundreds of thousands of acres of agricultural land, which could be tilled by the Saudis and the product could be taken away for consumption in the Kingdom.

Foreign Minister Shah Mehmud Qureshi, Defence Minister Ahmed Mukhtar, Water and Power Minister Raja Pervez Ashraf and Agriculture Minister Nazar Gondal are also accompanying the prime minister.

The Saudis are being asked to set up fertiliser plants in Pakistan to boost the food production, a concern for the entire world as food shortages are expected to grow in coming years. Speaking to reporters on his special plane, Gilani thanked the Saudis for inviting a big economic and trade delegation and hoped that the talks, to be held in Jeddah on Sunday, would be fruitful.

He also commented on the domestic situation in Pakistan and advised the Punjab government to handle the lawyers’ long march in a deft manner so that no law and order situation was created.

He said the president had now realised that he had only opportunists who were with him in the last many years and people like former prime minister Shaukat Aziz and former speaker Chaudhry Amir Hussain were criticising him.

Gilani said the new budget would provide adequate relief to the common man. Agencies add: Earlier, Prime Minister Syed Yousuf Raza Gilani left on Friday on a three-day official visit to Saudi Arabia, saying his trip will further strengthen the strong bonds that already exist between the two brotherly countries.

The prime minister was seen off at the Chaklala Airbase by his Adviser on Interior Rehman Malik, Chief of the Army Staff Gen Ashfaq Parvez Kayani, Chairman Joint Chiefs of Staff Committee Gen Tariq Majid, Chief of the Air Staff Air Chief Marshal Tanvir Mehmud Ahmed and senior officials.

“Pakistan and Saudi Arabia enjoy very strong brotherly and historic relations and my talks with the Saudi leadership will focus on the regional and international situation, particularly the bilateral ties,” Gilani told the newsmen before leaving for Saudi Arabia.

In response to a question, the prime minister said the talks would also cover cooperation in various fields as his delegation included several ministers. Besides ministers for foreign affairs, defence, commerce, petroleum, food and agriculture, water and power and housing, the prime minister is being accompanied by PPP Secretary-General Jahangir Badr, some MNAs and officials concerned.

An aide said the prime minister was seeking an agreement with Saudi Arabia to defer oil payments as the country struggled to rein in the yawning trade and fiscal deficits. “The Saudi oil facility is also on the agenda,” the official, who declined to be identified, said. “Certainly, we have strong bilateral relations and traditionally, our leaders go there first to discuss various issues, including economic cooperation.”

http://thenews.jang.com.pk/top_story_detail.asp?Id=15176
Tamerlane
So after about 7-8 years the famous begging bowl that Pakistani Prime Ministers carry with them to foreign capitals it out again.
zionist
Yaar begharati ki bhi had hoti hai yaar hitwall.gif hum zinda quam hain humare izzat ka sauda na karain. swear.gif Why cant the govt. not come together and solve the problem. Every time we have a problem we run to the Arabs and then when the need is over we diss them. I hope that the Arabs dont agree to any of the requests. this is when we will learn a lesson.
OmaR UK
Pakistan seeks $2bn Saudi oil bail-out


Published: June 7 2008 03:00 | Last updated: June 7 2008 03:00

Pakistan is to ask Saudi Arabia if it can defer paying for $2bn (€1.3bn, £1bn) worth of oil imports as it grapples with a deteriorating economic situation undermined by global oil prices.

Yusuf Raza Gilani, the newly elected prime minister, was due to arrive in the desert kingdom last night on a pilgrimage to Mecca. He was expected to push Pakistan's request in meetings with Saudi leaders including King Abdullah, a senior government official told the Financial Times.

In Islamabad, the government is expected to unveil a new budget next Wednesday.

Western economists have said that Pakistan may have to raise domestic oil prices significantly if it wants to qualify for a crucial World Bank loan of $500m, currently under discussion. The World Bank is urging Pakistan to withdraw subsidies to oil consumers. Independent economists say that while the World Bank's loan would be relatively modest, it would allow Pakistan to seek commercial loans from other sources.

Ending subsidies for all types of fuel, such as petrol, diesel and paraffin, would be a hugely unpopular step by a government whose future remains uncertain. The government has already given warning of significant spending cuts in order to reduce the budget deficit.

"If Saudi Arabia comes to Pakistan's rescue at this difficult time, that would make a huge difference," said one western economist.

Saudi Arabia gave a generous facility to Pakistan to defer payments on oil imports after the latter was subject to sanctions for carrying out its maiden nuclear tests in 1998 in defiance of the west.

However, analysts pointed to the risks to Pakistan's economic and investment interests. "If you make it known to the world that things are so bad that you are desperately reaching out to the Saudis, who would want to invest here in Pakistan?" said Masud Dahar, a policy analyst and former government official.




http://www.ft.com/cms/s/0/f5fb75ec-342a-11...00779fd2ac.html
must7
Saudia lately was planning on buy land for rice production in Thailand.

This way Saudia can invest in land in Pakistan and start it's own wheat crops. I am sure due to hightec technology & investment other farmers are going to learn from this & increase our per hector yield ..

Good opportunity for both the countries if done wisely.
OmaR UK
Pakistan seeks $6 bn aid from Saudi Arabia in return for land

Saturday 7th June, 2008


Pakistan will seek $6 billion aid from Saudi Arabia during Prime Minister Yousaf Raza Gilani's visit, in return offering land for growing and exporting wheat.

Gilani arrived in Medina Friday and will be joined Sunday by Asif Ali Zardari, co-chair of the Pakistan Peoples Party (PPP) that leads the country's ruling coalition.

'The package being envisaged includes free oil and lavish provision of wheat supplies by Saudi Arabia, now said to have abundant food supplies,' The News said Saturday.

In return, Pakistan would offer 'hundreds of thousands of acres of agricultural land, which could be tilled by the Saudis and the product could be taken away for consumption in the kingdom', it added.

Foreign Minister Shah Mehmud Qureshi, Defence Minister Ahmed Mukhtar, Water and Power Minister Pervez Ashraf and Agriculture Minister Nazar Gondal are accompanying the prime minister.

The Saudis would also be asked to set up fertiliser plants in Pakistan to boost food production.

Speaking to reporters on the flight to Saudi Arabia, Gilani hoped his talks, to be held in Jeddah Sunday, would be fruitful.
OmaR UK
Pakistan: Greater Saudi investment key to economic progress

By Farhan Bokhari, Special to Gulf News
Published: June 08, 2008, 00:05

Islamabad: Pakistan Prime Minister Yusuf Raza Gilani's trip to Saudi Arabia this weekend to seek deferred oil payments at a time when Islamabad is struggling to rein in a yawning trade and fiscal deficit, sends a mixed message across to the country's equity investors.

If there is good news by Monday when Gilani prepares to return home, sentiment in places like the Karachi Stock Exchange (KSE) would obviously receive a significant boost.

Last year, Pakistan's oil import bill rose by over 40 per cent compared with the previous year. In the past year, the current account deficit has surged to at least 7.5 per cent of gross domestic product while the fiscal deficit was positioned to surge to nine per cent of GDP.

The government says that it expects the fiscal deficit to fall to around 6.5 per cent of GDP due to the expenditure cuts it has taken in the past few months.

Pakistan's policymakers are worried about the impact of high oil prices on the country's economy. The newly elected government is left with no choice but to reach out desperately to Saudi Arabia.

In 1998, after the sanctions following Pakistan's maiden nuclear tests, Saudi Arabia came offered a facility to first defer oil payments for three years and then write off the dues.

There are three vital elements needed to develop this valuable partnership.

First, Gilani's government must seek investments from Saudi entrepreneurs. Attracting Saudi investors must be central to Pakistan's future economic and investment policy.

Second, securing deferred oil payments from Saudi Arabia should not be considered the ultimate end objective as Pakistan ventures to improve its economic outlook.

Exporting more Pakistani workers to Saudi Arabia could work to Pakistan's long term advantage in a number of ways, notably remittances.

Finally, Saudi Arabia has reportedly begun searching around for opportunities to invest in the farming sector of its neighbours such as in the Sudan. In Pakistan too, there are plenty of opportunities in the farm sector where Saudi investments would not only bring generous returns, but secure food supplies for the kingdom.

Gilani's trip has the potential to be turned into a long-term success story, though it depends on how Pakistan carries forward its policies towards promoting its relations with Saudi Arabia.
weera
Very bad move.

Control oil and you control nations; control food and you control the people; control money and you control the world - Henry Kissinger

Tim
SA is flooded with green back and they have to plough it some where so why not Pakistan? PM is asking for deffered payment not free money and the problem is created at least in part by OPEC in the first place so they must foot some of the bill at least for the friendly muslim countries.
Captain Bribes
QUOTE(weera @ Jun 7 2008, 09:01 PM) *
Very bad move.

Control oil and you control nations; control food and you control the people; control money and you control the world - Henry Kissinger


We dont need to hear anything more from Henry Kissenger, Pakistanis have heard enough from this Jew for too long!
OmaR UK
Riyadh to give Rs 11m oil subsidy per day

Zardari says Musharraf unconstitutional president | Gillani says no rift with PML-N on judiciary

The Post Report And Staff Reporter

JADDAH/LAHORE: Prime Minister Yousaf Raza Gillani has said that Saudi Arabia will give Rs 11 million as subsidy to Pakistan in oil on daily basis for a year. Addressing the Pakistani community in Jeddah he said it has been categorically stated in the constitutional package that the institutions should be strengthened instead personalities.

Gillani said restoration of judiciary, economic stability and peace in the country were the foremost priorities of the coalition government, adding that the present government wanted to see reins of state in the hands of country's people.

Pakistan people's Party Co-chairman Asif Ali Zardari said that Prevez Musharraf was an unconstitutional president and he did not accept him as country's president. He declined having any sort of discord between his party and Pakistan Muslim League-N on the issue of judiciary. "The establishment and undemocratic powers are against my party; however, if some one has bullets, we have vast extent of land in Ghuri Khuda Bhuksh," he said.

Addressing the Pakistani community in Jeddah he said he would payback to Benazir's sacrifice by changing the system. The Bhutto family gave priority to death instead of yielding to the dictatorship, he said.

Earlier talking to media men in Jeddah Zardari said that their expectations had been fulfilled by the Saudi Arabia. "Saudi leadership accepted our request and extended cooperation with an open heart," he said.

Prior to this both the leaders held a meeting with Shah Abdullah and discussed important matters with him. After the meeting with Shah Abdullah the prime minister said that he was satisfied with the outcome of the meeting. On the other hand a meeting also held between Pakistan's defense minister and Saudi defense minister, both ministers agreed to extend defense cooperation and PIA Huj filghts to be used for carriage while federal minister for food and agriculture Nazar Muhammad Gondal also met with his counterpart and decided to increase corporation.

Asif Ali Zardari talking to a TV channel said that Musharaff was not a constitutional president he had been inherited to us.

Agencies add:

Prime Minister Syed Yousuf Raza Gilani Sunday said the proposed constitutional package does not relate to any specific person rather it aims at bringing about balance of power between different state institutions.

He was addressing the Pakistani community here after the inauguration of Shaheed Benazir Bhutto Auditorium at Pakistan International School. Asif Ali Zardari speaking on the occasion said the legal wing of PPP had presented the package after much deliberations, however, it was not sacrosanct and could be changed. He said the package also deals with the abrogation of the Constitution and penalties have been suggested for those responsible.

Gillani termed the hanging of late Zulfikar Ali Bhutto as a judicial murder and said the matter will be re-opened for investigation. The prime minister said PML-N leader Nawaz Sharif had assured that after the resolution of judges issue he, in consultation with his party, would support the idea. Referring to the lawyers' movement, Gilani said the PPP was at the forefront in the struggle of lawyers and said no one else can make any claim that they were ahead of the PPP in this regard. The PM said the people of country have voted in power the moderates and said a broad-based government has been formed to develop consensus on national issues. It has been replicated at the provinces by setting aside political differences, he added.

Prime Minister Syed Yousuf Raza Gilani said as the world was facing great challenges including inflation and shortages of food, energy and water, Pakistan along with other third world countries was also facing the challenges of unemployment, social injustice, population growth, inflation and political upheaval.

Gilani urged the expatriates to send their foreign exchange to Pakistan through banks rather than 'hundi', so that the country's economy could be strengthened. He also invited them to invest in Pakistan and pledged utmost support from the government and ensured security of their investment money. Gilani said in near future, Pakistanis in Riyadh and suburbs would be enjoying the facility of Machine Readable Passport.

He said his government intended to construct one million residential units in Pakistan every year. He said the project of OPF Housing Schemes for expatriates as announced by Federal Minister for Labour and Overseas Pakistanis during his recent visit to Saudi Arab, would soon be completed. On educational institutes in Saudi Arabia, the PM said a comprehensive plan was in process to get their administration rights for smooth functioning.

The PM said the Saudi government had formally approved for the new building of Consulate General in Jeddah, which would help provide better facilities to expatriates.

PPP Co-Chairman Asif Ali Zardari termed his visit to Saudi Arabia as satisfactory and successful. He said all its major objectives had been achieved.

Talking to journalists in Jeddah, Zardari said President Musharraf was not a legal President; however, he had been elected as President of Pakistan before PPP came into power. Responding to a question, Zardari said he could not answer all the questions and some questions should also be put to President Musharraf. Asif Zardari said PML-N was part of coalition government and could join the cabinet at any time.

The Prime Minister along with Asif Ali Zardari and his entourage went to the Grand Mosque - the Holy Kaab'a to perform Umra. They offered special "nawafil" and sought the blessings of the Allah Almighty in helping the country overcome various challenges and to bring peace, security and stability.

Prime Minister Syed Yousuf Raza Gilani left for home here Sunday at the conclusion of his three-day visit to Saudi Arabia.

While the Prime Minister and his delegation left for Pakistan this evening, Asif Ali Zardari has extended his stay in Saudi Arabia to hold further talks with the Saudi leadership.



Zardari said his party did not recognize Musharraf as constitutional president and it is keeping only working relationship with the president.

"We want balance of power in the constitutional institutions rather than a confrontation between parliament and president. We want to put the country on the road to progress beyond our personal likes or dislikes. All the expectations with which we have come have been fulfilled, therefore, we have extended out stay in Saudi Arabia. Whenever we had sought cooperation from Saudi government, Saudi leadership had always shown generosity. We have extended our stay in Saudi Arabia to move forward the talks process with Saudi leadership", he underscored.

Prime Minister Syed Yousuf Raza Gillani along with Co-chairman PPP, Asif Ali Zardari performed Umra here late Saturday night and prayed for peace, progress, solidarity and prosperity of Pakistan.

Prime Minister Syed Yousuf Raza Gilani left for home here Sunday at the conclusion of his three-day visit to Saudi Arabia.

Maqboolur Rehman Abbasi add from Jeddah

Prime Minister Syed Yousaf Raza Gillani and PPP Co-chairman Asif Ali Zardari addressed the Pakistani community at Shaheed Benazir Bhutto Memorial Auditorium of Pakistan International School in Jeddah. They were accompanied by the federal ministers Shah Mehmood Qureshi, Raja Pervez Ashraf, Nazar Gondal, and PPP General Secretary Jehangir Badr.

Professor Waseem Shahid conducted the function, Asif Ali Zardari unveiled the plaque of auditorium named after Shaheed Benazir Bhutto. He said that Benazir laid the foundation of this school. Ambassador of Pakistan Admiral (rtd) Shahid Kareemullah underlined demands of overseas Pakistanis in his welcome address. He requested the prime minister for issuance of machine readable passports from Riyadh and 72-100 pages passports for Pakistani businessmen. He also sought opening of a branch of Allama Iqbal Open University in Saudi Arabia and quota for overseas Pakistanis in housing schemes in Pakistan.

The prime minister acknowledged all the demands presented by the ambassador and promised to issue orders very soon.

Esar Shah, Principal of Pakistan International School and administrator Sehr Kamran and Qari Shakeel of Muslim league-N presented shields to prime minister and PPP Co-chairman.
MoThSmOkE
Saudis investing in commercial farmland in Pakistan would be just like another feudal Pakistan is plagued with. Not that I am saying its a negative thing. Atleast there would be employment for Pakistani farmers and other support industries.
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