ISLAMABAD – Kuwait extended its oil credit facility to Pakistan for an unprecedented two years, marking significant milestone in bilateral ties.
The announcement was made after a meeting between Federal Minister for Petroleum Ali Pervaiz Malik and Kuwaiti Ambassador Nassar Abdulrahman J. Almutairi as two sides discussed ongoing energy collaboration and new investment opportunities in Pakistan’s petroleum sector.
Islamabad and Kuwait reiterated advancing ties with first time oil credit facility for two years, as previous renewals were limited to a single year. The extension is seen as a strong signal of Kuwait’s confidence in Pakistan’s economic direction and commitment to long-term partnership.
Pakistan’s Minister for Petroleum thanked Kuwaiti government, calling it much needed gesture a timely boost to energy security and financial stability. He also acknowledged Kuwait’s flexibility in adjusting the agreement to better reflect Pakistan’s current economic and energy needs.
Ambassador Almutairi also reaffirmed Kuwait’s willingness to expand its economic engagement with Pakistan and praised the country’s recent progress toward economic recovery.
The extended facility is expected to ease pressure on Pakistan’s foreign exchange reserves, which have been strained due to high fuel import bills. Despite signs of recovery following a $7 billion IMF bailout in 2024, Pakistan continues to rely heavily on imported energy, making such arrangements critical for economic management.
Earlier this year, Saudi Arabia renewed $1.2 billion oil financing arrangement through the Saudi Fund for Development (SFD), which has provided about $6.7 billion to Pakistan since 2019.
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