Kuwait has extended its oil credit ease in Pakistan for two years, marking a deepening of bilateral cooperation in the energy sector.
The announcement was made at a meeting between Kuwaiti Ambassador Nassarrahman J. Almutairi and Federal Oil Minister Ali Pervaiz Malik in Islamabad in Islamabad.
According to a press release from the oil division, this is the first time that Kuwait has granted Pakistan a two -year extension, because the establishment has traditionally been renewed on an annual basis.
Minister Malik thanked Kuwait for his continuous support, describing the gesture as a timely boost of energy security and economic resilience of Pakistan. He also appreciated the “special accommodation” carried out by Kuwait in recognition of the evolutionary needs of Pakistan.
Ambassador Almutairi has reaffirmed Kuwait’s commitment to broaden economic and energy ties with Pakistan, expressing his confidence in the country’s current growth trajectory. Discussions during the meeting also explored new investment opportunities in the Pakistani oil sector.
Prolonged oil credit is expected to reduce the pressure on Pakistan exchange reserves, which remained under tension due to high energy import costs.
The Pakistan economy has shown signs of stabilization following a bailout of the $ 7 billion International Monetary Fund (IMF), which has helped to avoid a defect in 2024. However, energy imports continue to be a major drain on foreign reserves, which prompted Islamabad to ask for credit agreements and Rollovers from regional partners.
In February, Saudi Arabia extended an oil financing installation of $ 1.2 billion through the Saudi Fund for Development (SFD) for another year. Since 2019, the SFD has provided approximately $ 6.7 billion in Pakistan for the importation of petroleum derivatives.
The Kuwaitian installation, now extended for two years, represents a strategic step in strengthening the energy supply of Pakistan while solidifying the regional partnerships that play a crucial role in the country’s economic roadmap.