Category: 1. Pakistan

KARACHI/SINGAPORE: Pakistan is exploring ways to sell excess liquefied natural gas (LNG) cargoes amid a gas supply glut that could cost domestic producers $378 million in annual losses, according to a presentation and a government official familiar with the matter.

The country has at least three LNG cargoes in excess that it imported from top supplier Qatar and has no immediate use for, and is currently selling natural gas at steep discounts to local users, a second government official said.

Power generation from gas-fired power plants, which has historically accounted for a lion’s share of LNG use in the country, has declined for three straight years ended 2024, with cheaper solar power use dramatically gaining at the expense of gas-fired generation, data from energy think-tank Ember showed.

That has forced domestic producers of the fuel to curb production.

Pakistan is currently exploring the possibility of transferring LNG cargoes to rented tankers for “offshore storage and onward sale,” state-owned oil and gas producer OGDCL said in a presentation to industry and government.

“Excess LNG in the gas network has resulted in significant production operations impact for local exploration and production companies over last 18 months,” OGDCL said, adding that it had forced curtailment of domestic supply.

The domestic industry could suffer $378 million in losses over the next 12 months at the current rate of curtailment, according to the presentation dated May 29 reviewed by Reuters.

It is not immediately clear if Pakistan’s long-term LNG import contracts with QatarEnergy allows for a resale of cargoes. One of the government officials said the country was still exploring ways to do it.

Qatar typically has a destination clause in long-term supply contracts with buyers that restrict where the cargoes can be sold.

QatarEnergy did not immediately respond to a request seeking comment.

Pakistan has already deferred five contracted LNG cargoes from Qatar without financial penalty, shifting delivery from 2025 to 2026, as the country grapples with surplus capacity.

Pakistan’s petroleum minister Ali Pervaiz Malik declined to comment on the presentation, but said renegotiating contracts with Qatar was a “complex” process that could take at least a year, and a final decision on initiating it had yet to be made.

“While the existing contract with Qatar allows Pakistan to decline vessels, doing so incurs penalties and other complications,” Malik told Reuters.

The glut has stemmed from several gas-fired power plants, previously operating under must-run contracts, now being sidelined, Malik said.

“It was expected that summer season will create extraordinary demand but the trend indicates the opposite,” OGDCL said in the presentation.

ISLAMABAD:

In a move reflective of deepening political unease, the parliamentary party of Pakistan Tehreek-e-Insaf (PTI) has decided to administer fresh loyalty oaths to its lawmakers, amid concerns of possible defections following a Supreme Court verdict on reserved seats.

According to a report by Express News on Tuesday, the PTI has convened a crucial meeting of its parliamentary party in Islamabad on Wednesday. All members of the national and provincial assemblies affiliated with the party have been directed to attend.

Party insiders said that the primary focus of the meeting will be the evolving political dynamics in light of the apex court’s recent decision, which stripped PTI of its claim to nearly 80 reserved seats in national and provincial legislatures.

Discussions will also centre around the political calculus in Punjab and Khyber-Pakhtunkhwa (K-P), where shifting alliances could prove pivotal in the coming days.

Read More: PTI loses court battle for reserved seats

Particularly in K-P, where PTI-backed independents hold sway, the party leadership remains wary of overtures by rival political forces. Thirty-five of these independents—previously aligned with PTI—are expected to retake loyalty pledges, reaffirming their commitment to the party.

Sources confirmed that a similar oath-taking exercise had been carried out post-elections, but fresh fears of desertions have prompted renewed action.

The Supreme Court’s short order, issued last week, overturned a July 12, 2024 verdict that had restored PTI’s status as a parliamentary party and granted it access to reserved seats.

The recent ruling has significantly altered the balance of power in the National Assembly, bolstering the position of the ruling coalition, which now stands within reach of a two-thirds majority—an outcome with far-reaching implications for constitutional amendments and governance.

Prime Minister Shehbaz Sharif has directed the National Disaster Management Authority (NDMA) to prepare a coordinated plan in coordination with the provincial disaster management authorities to prevent incidents like the recent Swat tragedy.

Addressing a ceremony during his visit to the National Emergency Operations Centre of the NDMA in Islamabad on Tuesday, Sharif ordered a comprehensive reporting on such incidents. He said at least 49 people have died and several others injured across Pakistan.

Commending the state of the art NEOC facility, he assured the officials he would provide all possible assistance to strengthen the institution and build its capacity.

Sharif said he has already tasked Planning Minister Ahsan Iqbal and Minister for Climate Change Musadik Masood Malik with securing grants and investment through public-private partnerships for building a resilient infrastructure in Pakistan.

On the subject of water security in light of India’s provocative and hostile intentions regarding the Indus Waters Treaty, the prime minister announced the government’s decision to construct non-controversial water storage facilities using Pakistan’s own resources.

The Judicial Commission of Pakistan (JCP) on Tuesday appointed the chief justices to the four high courts, a statement issued by the Supreme Court said.

Per the statement, the JCP held four consecutive meetings to make a decision related to the appointments and, by a majority of its total membership in each meeting, opted to allow the acting chief justices to continue serving the top roles.

Letters were subsequently issued to the prime minister’s principal secretary, informing the government about the nominations and requesting the forwarding of the same to the president for their appointment.

The letters said that Justice Sarfraz Dogar was nominated as the new chief justice of the Islamabad High Court (IHC), Justice Rozi Khan Barrech as the chief justice for the Balochistan High Court (BHC), Justice Syed Muhammad Attique Shah for the Peshawar High Court, and Justice Junaid Ghaffar for the Sindh High Court (SHC).

Pre­sident Asif Ali Zardari on Saturday had already formally decla­red Justice Dogar the “senior-most judge” of the IHC, following the issuance of a revised seniority list by the Ministry of Law and Justice.

The development followed a ruling by the Supreme Court on June 19, upholding the constitutionality of transferring three judges from other provincial high courts and referring the matter of seniority determination to the president.

On Friday, five IHC judges had challenged the Supreme Court’s decision to uphold the transfer of three judges — Justice Dogar from the LHC, Justice Khadim Hussain Soomro from the SHC, and Justice Muhammad Asif from the BHC.

President Zardari had also declared that the status of the transfer of all three judges would be permanent.

The Judicial Commission of Pakistan (JCP), under the chairmanship of Chief Justice Yahya Afridi, approved on Tuesday the appointments of permanent chief justices for four major high courts, including Peshawar, Balochistan, Sindh and Islamabad.

According to sources, Justice SM Attique Shah has been appointed as the permanent Chief Justice of the Peshawar High Court, reported Express News.

His name was chosen from among three candidates including Justice Ijaz Anwar and Justice Arshad Ali.

For the Balochistan High Court, Justice Rozi Khan was confirmed as the new Chief Justice.

He was selected based on his top seniority ranking, ahead of other two nominees, namely Justice Muhammad Kamran Khan and Justice Iqbal Ahmed Kasi.

Meanwhile, Justice Muhammad Junaid Ghaffar has been appointed as the permanent Chief Justice of the Sindh High Court. His appointment was reportedly unanimous, as he currently ranks highest in the court’s seniority list.

Read: Five IHC judges file intra-court appeal

The commission also deliberated over the Islamabad High Court’s top post, reviewing the names of Justice Sarfraz Dogar, Justice Mohsin Akhtar Kayani and Justice Miangul Hassan Aurangzeb.

Justice Sardar Sarfraz Dogar was confirmed as the new Chief Justice, securing a majority vote with nine JCP members in favour. He also leads the court’s seniority list.

Plea before SC

Meanwhile, Senator Ali Zafar, a member of the JCP affiliated with the Pakistan Tehreek-e-Insaf (PTI), told media outside the Supreme Court that his stance remains firm — only the senior-most judge should be appointed as chief justice.

He noted that an intra-court appeal concerning IHC judges’ seniority is still pending and said the matter should not have been discussed until the appeal is decided.

“If our view is not accepted, we will vote accordingly,” he said, without disclosing how he had cast his vote.

Earlier, five IHC judges had challenged the apex court’s order endorsing the transfer of three judges to the IHC.

They have also requested the apex court to restrain the three transferred judges — including Acting Chief Justice Sarfraz Dogar — from performing any judicial or administrative functions as IHC judges.

The judges, including Justice Mohsin Akhtar Kayani, Justice Tariq Mehmood Jahangiri, Justice Babar Sattar, Justice Sardar Ijaz Ishaq Khan and Justice Saman Rafat Imtiaz, have filed an intra-court appeal against the order through counsels Muneer A Malik and Barrister Salahuddin Ahmed advocate in the apex court.