ISLAMABAD – In a positive development for Pakistan’s energy sector, Kuwait has agreed to extend its oil supply credit facility for two years – a first in the history of cooperation between the two countries.
The agreement was finalized during a meeting between Pakistan’s Federal Minister for Petroleum, Ali Pervaiz Malik, and Kuwaiti Ambassador Nassar Abdulrahman J. Almutairi. The two sides discussed ongoing energy collaboration and future investment opportunities in Pakistan’s petroleum industry.
Previously, the credit facility was renewed annually. This new two-year extension reflects Kuwait’s growing confidence in Pakistan’s economic direction and long-term partnership potential.
Minister Ali Pervaiz Malik expressed gratitude for Kuwait’s support, saying this decision comes at a crucial time and will greatly help in improving the country’s energy security and financial stability. He also appreciated Kuwait’s willingness to adapt the agreement according to Pakistan’s current economic needs.
Ambassador Almutairi reiterated Kuwait’s desire to expand its economic engagement with Pakistan and acknowledged the country’s recent progress toward economic recovery.
This extended oil credit facility is expected to ease pressure on Pakistan’s foreign exchange reserves, which have been under stress due to high energy import costs. Even after a $7 billion IMF bailout in 2024, Pakistan still heavily relies on imported fuel.
Earlier this year, Saudi Arabia also renewed its $1.2 billion oil financing agreement with Pakistan, continuing support through the Saudi Fund for Development (SFD), which has contributed $6.7 billion since 2019.