In a first, Kuwait extends oil credit facility to Pakistan for two years
ISLAMABAD: Kuwait has extended an oil credit facility to Pakistan for an additional two years, state-run media reported on Wednesday, with the development expected to help Islamabad manage its energy imports and maintain foreign exchange reserves.
The extension marks the first time that Kuwait has prolonged the credit facility for two years. The Gulf country typically grants Pakistan one-year extensions.
Expensive energy imports dominate Pakistan's import bill. Suffering from a prolonged economic crisis for the past two years, Pakistan relies heavily on credit facilities and rollovers to maintain its foreign exchange reserve levels. In February this year, Saudi Arabia agreed to defer a $1.2 billion payment on Pakistan's oil imports by one year.
'Kuwait has extended oil credit facility for Pakistan for another two years,' state broadcaster Radio Pakistan reported following a meeting between Kuwait's ambassador to Pakistan and Petroleum Minister Ali Pervaiz Malik.
It said Malik thanked Kuwait for the 'special concession,' adding that the facility has been extended by Kuwait Petroleum to the Pakistan State Oil.
'On the occasion, the two sides agreed to strengthen bilateral cooperation in the energy sector,' the state media said.
The Kuwaiti ambassador commended Pakistan's significant economic progress, particularly in stabilizing the economy and improving the investment climate, Radio Pakistan said. He expressed confidence in Pakistan's growth trajectory and reaffirmed Kuwait's commitment to deepening economic and energy partnerships between the two nations.
Malik stressed Pakistan's dedication to fostering stronger ties with Gulf nations, particularly in energy and trade.
Like most Gulf nations, Islamabad has cordial relations with Kuwait, which hosts around 95,000 Pakistanis. It enjoys cooperation with Kuwait at the UN, the Orgainsation of Islamic Cooperation (OIC) and other multinational forums such as the Financial Action Task Force (FATF).
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