Azerbaijan offers Pakistan open oil credit facility

Azerbaijan has offered Pakistan an open credit line of $ 100Mn for purchase of petroleum products without any sovereign guarantees, an offer, though small, will help ease some pressure on Pakistan’s fast dwindling foreign currency reserves. At present, Middle Eastern countries like Saudi Arabia, the UAE and Kuwait are major suppliers of oil to Pakistan. However, any deal with energy-rich Azerbaijan will lessen Pakistan’s excessive reliance on them. Azerbaijan has nominated state-run Socar and Pakistan has designated PSO for signing a commercial deal in this regard. The Petroleum Division is now required to seek approval of the cabinet for waiving Public Procurement Regulatory Authority (PPRA) rules in order to pave the way for a govt.-to-govt. deal.