Kuwait has granted Pakistan an unprecedented two-year oil credit facility, marking a significant development in the energy cooperation between the two nations.
The deal was announced following a meeting between Pakistan’s Federal Minister for Petroleum, Ali Pervaiz Malik, and Kuwaiti Ambassador Nassar Abdulrahman J. Almutairi, where both parties discussed ongoing energy collaborations and explored new investment opportunities in Pakistan’s petroleum sector.
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This marks the first time Kuwait has extended its oil credit facility for two years, as previous agreements had only been for one-year terms. The extension is seen as a strong endorsement of Pakistan’s economic trajectory and a commitment to long-term bilateral partnership.
Minister Malik expressed gratitude to the Kuwaiti government, calling the gesture a timely and vital boost to Pakistan’s energy security and financial stability. He also appreciated Kuwait’s flexibility in adapting the agreement to better suit Pakistan’s evolving economic and energy requirements.
Ambassador Almutairi reiterated Kuwait’s readiness to further enhance its economic relations with Pakistan, commending the country’s progress toward economic recovery.
The extended oil credit facility is expected to alleviate pressure on Pakistan’s foreign exchange reserves, which have been under strain due to high fuel import costs. Despite the recovery signs following a $7 billion IMF bailout in 2024, Pakistan still heavily depends on energy imports, making such agreements crucial for economic management.
Earlier this year, Saudi Arabia also renewed a $1.2 billion oil financing arrangement through the Saudi Fund for Development (SFD), which has provided Pakistan with around $6.7 billion since 2019.
