ISLAMABAD, Aug 29(ABC): Pakistan has assured international LNG suppliers of timely payments for their spot cargoes over the next six years through standby letters of credit (SBLCs) to top-ranking international banks.
The state-run Pakistan LNG Limited (PLL) has given the assurance to international bidders, seeking 72 cargoes over the next six years (2023-28) at the rate of one cargo per month.
The company floated tenders on Aug 6 with a bidding deadline of Sept 13. However, international firms sought payment assurances or sovereign guarantees because of prevailing balance-of-payments challenges.
“The PLL will issue an SBLC from a scheduled bank with a long-term credit rating of at least AA from Pacra/JCR-VIS or equivalent from a reputable international credit rating agency … PLL may issue an SBLC through United Bank Limited (UBL),” the company said, asking the bidders to also seek confirmation of the SBLC through top international banks, namely JP Morgan, Citi Bank and Deutsche Bank but declined to provide a sovereign guarantee from the finance ministry.