WNAM REPORT: The Economic Coordination Committee (ECC) of the Cabinet of Pakistan has approved the establishment of an International Joint Trading Company in Singapore as part of a collaborative venture between Pakistan State Oil (PSO) and the State Oil Company of the Azerbaijan Republic (SOCAR).
According to Pakistani media reports on Saturday, the ECC directed the Ministry of Petroleum to conduct thorough due diligence on the investment process, particularly regarding equity contributions, and to provide a timeline for the company’s operational launch.
During its meeting, the ECC approved the incorporation of the International Joint Trading Company in Singapore by PSO and SOCAR. The Committee also instructed that a timeline be established for the company’s operationalization. The meeting, held in Islamabad, was chaired by Pakistan’s Federal Minister for Finance and Revenue, Muhammad Aurangzeb.
In this regard, the ECC reiterated its directive for the Ministry of Petroleum to ensure comprehensive due diligence on the investment process. Media reports further stated that PSO would deposit $0.5 million in a Singaporean bank, a mandatory requirement for registering the company.
According to officials, the government has agreed to establish the trading company in Singapore as a joint venture with SOCAR for purchasing LNG in the spot market. Given SOCAR’s existing presence in the LNG business, PSO stands to benefit from SOCAR’s international market connections.
