Lahore (Web Desk): Pakistan on Monday signed a framework agreement with Azerbaijan for LNG procurement on flexible terms.
The agreement signed between State Oil company of Azerbaijan Republic (SOCAR) and Pakistan LNG Limited (PLL) was witnessed by Prime Minister Shehbaz Sharif.
Under this framework agreement SOCAR Trading has offered LNG supply to Pakistan in the form of one cargo per month, on flexible terms and with the credit lines for 30 days after delivery of the cargo in one year contract which is extendable by another year.
Speaking on the occasion, the premier said that the life of this agreement is one year which is extendable to one more year.
"Under the agreement, Azerbaijan will offer one Cargo of LNG each month and it will be up to Pakistan to either accept the cargo or not," PM Shehbaz said, adding that there will be no financial penalty if Pakistan does not accept the cargo.
The prime minister termed the agreement as a major milestone in the fraternal relations between Pakistan and Azerbaijan.
PM Shehbaz especially thanked the President of Azerbaijan for playing a pivotal role in this agreement.
Alluding to his recent productive and fruitful discussions with the President of Azerbaijan, the prime minister said we have given approval to Azeri airline to land in Islamabad, Lahore and Karachi.
This is a big step forward to promote tourism and investment and exchange of delegations between the two countries.
Shehbaz Sharif said that an Azeri delegation of horticulture experts is also arriving in Pakistan today on his invitation.
"We want to learn from their expertise to make the landscape of Karachi, Peshawar, Quetta and Lahore as beautiful as that of Baku," he said.
On the occasion, the premier also touched upon the matter of recent increase in the power tariff saying it was done so under the agreement reached with the International Monetary Fund (IMF).
PM Shehbaz however clarified that this increase will not burden about 63% of the total domestic consumers.
He said that 31% of the consumers have also been given partial subsidy.
In his remarks on the occasion, the Ambassador of Azerbaijan said that both the countries are deepening their cooperation in diverse fields including energy, defence, IT and transport.
He said that the two sides are also negotiating a preferential trade agreement, expressing the confidence that they will be successful in this regard as well.
The envoy said that approval of giving airspace to the Azerbaijan airline would increase the number of visitors and business delegation between the two counties.
He informed that a team of horticulture experts from Azerbaijan was arriving here in Pakistan to share their first hand experience in the sector with the Pakistani authorities.