Most recently, Pakistani Prime Minister Nawaz Sharif visited Qatar. During the visit, both countries signed a “game changing deal” of Liquefied Natural Gas (LNG). Now Pakistan can import up to 3.75 million tons of liquefied natural gas a year from Qatar.

Main Focus of the Visit

The main focus of the PM Sharif’s visit included energy cooperation, trade and investment defence and increase in employment opportunities for the Pakistani workforce in Qatar.

Singing of Different MOUs

Both countries inked a number of Memorandums of Understandings (MoUs) in the field of Health, Radio & Television and Education and Research during the two days official visit of the PM. This will further enhance level of trade and commerce and foster commercial diplomacy between the two countries in the days to come. Would brighten the chances of Qatari Foreign Direct Investment (QFDls) in the country; moreover, would diversify exports, joint ventures and fields of cooperation in the days to come.

Strategic Deal

It was a strategic deal amounting to $16 billion that will have multiplier effects on Pakistan’s economy, industrial production exports, and different productive channels and above all have a positive impact on national kitty. It would help Pakistan generate electricity and produce more fertilizer to meet its domestic needs. According to Ministry of Petroleum. Pakistan produces 4 billion cubic feet of natural gas per day (bcfd) against the demand for over 6 bcfd. The government considers LNG as a fast-track solution to the energy shortages.

The government of Pakistan is trying its best to explore different and alternative ways of energy and It power generation and game changing deal of LGP would fill about 20 percent of the country’s, it needs. Moreover, it would help save the country $1 billion a year. Supplies of the gas could start as early as March, 2016 and would continue through 2031 under the long-term deal. 

PM Sharif’s Statement

Prime Minister Sharif praised the government of Qatar for providing gas to Pakistan at competitive rates. He said that he pointed out during his meetings with the Qatari leader­ ship that the bilateral trade between Pakistan and Qatar needed to be increased from $300 million to at least $1 billion annually. He said that LNG import would boost trade between the two countries.

It is clear from the above data that bilateral trade is much below the existing potential of economies and it is hoped that Prime Minister Sharif’s visit would bring about changes for the better for the trade and commerce sector. Moreover, Pak-Qatar Joint Business Council would act as a catalyst to promote interaction between the private sec­tors of both countries. Increase in joint ventures would reduce the balance of trade between the two countries in the days to come.

Sharif said that measures were being taken to overcome the energy crisis and decrease power tariff. He said that LNG imported from Qatar would help lower prices of products and make them competitive in the international market.

PM Meeting with Emir of Qatar sheikh Tamim bin Hamad bin Khalifa Al-Thani

Prime Minister Nawaz Sharif held a meeting with Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa Al­ Thani. Both leaders thoroughly discussed ways to enhance cooperation in different fields including energy trade, investment and defence. the two sides also exchanged views on regional and international issues of mutual interest.

During the meeting, Nawaz Sharif said Pakistan offers attractive incentives for foreign investment and Qatar Investment Authority should explore the potential in different sectors particularly power generation projects. He stressed that Pakistan values its bilateral relations with Qatar and both countries enjoy friendly relations. He said Pakistan is a suitable country for investment and quantum of investment should be enhanced.

Emir of Qatar Sheikh Tamim bin Hamad bin Khalifa Al-Thani

During the meeting, Sheikh Tamim bin Hamad bin Khalifa Al­ Thani thanked the prime minister for the visit and said that Qatar is second home for Pakistanis. He said Pakistanis have contributed substantially for the development of Qatar. According to Qatar National Figure (2016), Qatar hosts more than 115,000 Pakistanis working in various sectors.

Scintillating Aerial Display of PAF JF-17 Thunder & Super Mushshak Aircraft

The two leaders also witnessed a scintillating aerial display of PAF JF-17 Thunder and Super Mushshak aircrafts. Air Chief Marshal Sohail Aman, Chief of the Air Staff, Pakistan Air Force and Major General (Pilot) Ghanem bin Shaheen Al Ghanem, Chief of General Staff, Qatar Armed Forces were also present on the occasion. Senior government and military officials of both countries also witnessed the aerial display. It was a momentous occasion when PAF JF-17 Thunder and Super Mushshak aircraft presented spec­ tacular aerial display in the skies of Qatar for the first time.

Air Chief Marshal Sohail Aman, Chief of the Air Staff, Pakistan Air Force briefed both the dignitaries about the capabilities of these indigenously manufactured aircraft. Both the dignitaries lauded the performance of PAF aircraft.

It is hoped that after witnessing scintillating aerial display of PAF JF- 17 Thunder & Super Mushshak air­ crafts the chances of further enhancing of defence cooperation and training would be strong between the two sides.

Pakistan’s Human Resource Export

During the said visit, the government of Qatar offered 100,000 visas for Pakistanis. It created great level of comfort and happiness among the Pakistanis living in Qatar. A member of the royal family, Sheikh Khalid bin Hamad, made a courtesy call on Sharif and offered 100,000 work visas for Pakistanis. Sharif told Hamad that Pakistan attached immense importance to its relations with Qatar.

PM Address to Pakistani Community

While speaking to Pakistani community, Prime Minister Nawaz Sharif said that Pakistan’s economy had witnessed a great turnaround and development was taking the country forward at a fast pace. He said that Pakistan had strong ties with Qatar and it wanted to strength­ en them through enhanced interaction at all levels.

Improved Security Situation

PM Sharif said the security situation in the country had improved after the launch of the Operation Zarb-e-Azb, which broke the back of the terrorists. He said the operation would be taken to its logical end. He said the people of Karachi praised the ongoing operation against criminals.

Highlighting of China Pakistan Economic Corridor (CPEC)

The PM said the China-Pakistan Economic Corridor (CPEC) would help the country’s economy. He said the Gwadar airport would be one of the most beautiful airports of the world. Sharif said that numerous projects for power generation were underway and all resources were being used with the help of China. He mentioned the Chinese investment in Pakistan’s energy sector and said that Pakistan urgently needed electricity to meet its needs. Talking to Sheikh Abdullah Bin Muhammad Al Thani, chief executive officer of the Qatar Investment Authority, in Doha, Sharif invited Qatar to explore investment opportunities in Pakistan, particularly in the energy sector.

LNG Deal

very country is pursuing its energy security policies. Energy Security has become mantra of very country around the globe. Despite constant decline in the oil prices in the international markets, every country wants to diversify its energy needs with the mix of gas, renewables, and the last but not the least, alternative sources of energy. Pakistan is also passing through a difficult time due to declining power generating channels in the country. The recently inked deal with Qatar looks better when compared with a contract signed by India with the energy-rich Gulf state.

Pakistan has planned to import 3.5 million tons per annum till 2030 which will be the first long-term agreement for the former that will place it on the world’s energy map.

Great Success of Pakistan’s Government

By using rigorous skills of commercial diplomacy, financial expertise and political wisdom the government of Pakistan has succeeded in persuading Qatar to revise the price downwards, compared to the initial pricing formula agreed between the two countries, leading to annual savings of $40 million. During the previous government of Pakistan People’s Party, Qatar was willing to offer LNG at 14.5 percent of Brent oil price. However, later Doha agreed to revise the price down­ wards to 13.9 percent.

Financial Benefits

According to the many experts and officials, the country has suffered a loss of $3 billion due to delay in LNG imports as it has to rely on expensive furnace oil and diesel to run power plants. Now, the country will be able to save $2.5 billion a year when LNG is consumed in power plants. The National Circular Debt (NCD) is haunting the energy sector and the national economy is losing three percentage points every year due to the power crisis. NCD is standing at Rs.480 billion. The use of LNG in power plants will help to tackle the debt. The country will have a sustainable energy solution following a long­ term deal with Qatar. It will help to eliminate or substantially reduce power outages, which are damaging the industrial sector and crippling the lives of ordinary citizens.

Concluding Remarks

Pakistan and Qatar have deep­ rooted and historical multi-dimensional relations that are based on cultural affinities, shared traditions and values, geographical proximity and identity of interests. Pakistan cherishes its historic brotherly relations with Qatar and wants them to be taken up to new heights through greater economic integration, healthy trade and commerce relations and joint ventures.

Pakistan attaches high importance to the regional and strategic position of Qatar in the Middle East and appreciated the leading role it is playing in the Muslim world today. Pakistan is very keen to further strengthen and diversify these rela­tions in all fields.

Now, Pakistan and Qatar have agreed to transform their bilateral relations into mutually beneficial economic partnership. Pakistan invited Qatar’s investment in the energy, infrastructure and agriculture sectors. Qatar assured that it would continue to support Pakistan’s desire to have a Free Trade Agreement (FTA) with the GCC countries. Qatar assures its full support to Pakistan’s efforts in facilitating peace and reconciliation process in Afghanistan.

The Government of Qatar constructed a model village in Rahim Yar Khan District comprising 200 houses of two rooms each, two schools, playground, mosques and a shopping area. It is constructed to rehabilitate people displaced by the recent floods. Qatar has always stood by Pakistan in times of need.

Previously, Pakistan-Qatar Joint Ministerial Commission (JMC) pro­ vided an excellent opportunity to enhance economic and trade relations between the two sides. It is a useful institutional framework for an in-depth review of existing economic relations and identification of new opportunities for mutually beneficial cooperation in various fields.

Moreover, in the near past both sides thoroughly discussed diverse issues, including joint development of hydropower sector, identification of sources of financing, exploration of investment opportunities in energy sector, rehabilitation of existing hydropower plants and infrastructure development. Now, Pakistan pro­ vides ample opportunities to potential Qatari businessmen and investors in the following given sectors of the national economy. Now, import of Liquefied Natural Gas (LNG) from Qatar would reduce Pakistan’s energy deficits and enhance trade & commerce cooperation.

There is a great opportunity for the Qatari government as well as private companies to make investments in the renewables in Pakistan, especially in solar, wind and hydro-power projects. Software technology parks ICT cooperation would be game changer between both the countries.

Cooperation in cotton would provide .win-win position to Qatari investors especially after the grant of GSP+ status to Pakistan because textile benefits are enormous and diversified. Moreover, oil & gas exploration would provide comparative advantage to Qatar which needs to be further strengthened. Extended cooperation in the fields of agriculture and food security would be a game-changer in the days to come. Tourism, SME, chemicals and infrastructure sec­ tors would be mutually benefited for both the countries.

Enhanced cooperation in the fields of service sector of Pakistan and Qatar in terms of exchange of technology, movement of capital and the skilled manpower would be mutually beneficial for both the countries. Pakistani exploration and production companies in oil and gas sector desire to join hands with the Qatari companies for investment in upstream and downstream projects in Pakistan.

The forward-looking policies of HH the Emir Sheikh Tamim bin Hamad al­ Thani and strategic vision of Prime Minister Nawaz Sharif is a great plus for both the countries to move for­ ward, aiming to be an advanced societies capable of sustaining its development and providing a high standard of living for all of its people” for generations to come would provide an ideal platform to go forward.

Qatar is now the land of wonders and corporate excels. It is one of the ideal homes of lavish hospitality. It reflects the true spirits of harmony and tolerance. The future of Qatar’s macro-economy depends on further diversification of economy, energy resources, widespread of social development, foreign direct investment, SMEs and above all human resource development. On Pakistan’s part, it is the land o resilience and .righteousness and home of courageous people and diversified cultures . Its national policies are based on non-violence and non-interference.

The future of further enhancing of bilateral relations of Pakistan an Qatar are bright, positive, diversified and sustainable.