Saudi confirms $125m credit facility for Pakistan: The News

By By Aftab Maken
7/13/2008
ISLAMABAD: Saudi authorities on Saturday confirmed to Pakistan, that it can avail credit facility worth $125 million for the import of urea fertiliser to meet its shortage, a senior government official told The News.

"The Ministry of Food, Agriculture & Livestock (MINFAL) and Economic Affairs Division (EAD) have finally concluded negotiations for Saudi credit," said Shahid Hussain Raja, Additional Secretary MINFAL on Saturday.

Pakistan had requested the Saudi government for reviving another credit facility of $125 million for the fertiliser, as it had nearly availed the existing Saudi credit facility of $133 million, which the kingdom pledged after the devastating earthquake of 2005 and Pakistan imported urea fertiliser as the country had been facing a severe shortage in the commodity since the last couple of years.

Pakistan is importing 300,000 tonnes of urea from Saudi Arabia under the credit facility offered by the kingdom and instead of distributing it to urea manufacturers, MINFAL would supply the commodity through National Fertiliser Corporation's outlets, Raja said.

After the recent increase in gas prices, urea manufacturers have increased the prices of the commodity from Rs620 to Rs700 per 50kg bag. It is worth mentioning that the government did not increase gas tariff for feedstock, but they increased the prices. Last year, urea price stood at Rs540 per 50 kg.

Prime Minister Syed Yousuf Raza Gilani, in his meeting with the King of Saudi Arabia in the first week of June, discussed economic cooperation between the two countries and sought Saudi assistance.

For more on this article, please click on the following link: Saudi confirms $125m credit facility for Pakistan: The News