ISLAMABAD, 1 March 2004 - Kuwait has decided to help Pakistan deepen its business, trade and investment relations with the Gulf Cooperation Council, besides expanding bilateral economic links.
Islamabad's new "look to Gulf" business policy will get a boost as a result of deeper relations with the six-nation GCC, multilaterally, but also bilaterally with these countries, especially Saudi Arabia, UAE, Kuwait and Bahrain. The two-way trade - and investment - flows are already moving ahead, from a somewhat a comparatively slow pace since the mid-1990s. Experts also feel that besides investment and trade from GCC countries, Pakistan will benefit from the fast growth that has already taken place in the region - and continues with a strong dynamism.
The latest spurt in this direction comes as a result of the just-concluded meeting of the Kuwait-Pakistan Joint Ministerial Commission (KPJMC). Kuwait Minister for Commerce & Industry Abdullah Abdul Rehman Al-Taweel set the ball rolling at KPJMC for stepping up GCC-Pakistan deepening and widening of investment and business relations. Kuwait will also help to develop a cooperative strategy between GCC and Pakistan. Bilaterally, he also committed Kuwait larger investment for several infrastructure projects and trade expansion.
Taweel assured Finance Minister Shaukat Aziz on behalf of the government of Kuwait to move for securing "dialogue partner" status for Pakistan in the GCC. Al-Taweel said, "Kuwait will plead for Pakistan's case because it is our ally and a trusted friend of GCC, and should be made an active partner for trade and economic activity in the Gulf."
It will ensure a substantial business cooperation and opening up of FDI inflows from the six GCC members, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and United Arab Emirates. Several hundred thousand Pakistanis are currently working in GCC countries and nearly a third of all home remittances of $3.5 billion to 4.5 billion a year come to Pakistan from this region.
Pakistan offers a number of opportunities, both to private and the public sector, for investment. Al-Taweel informed KPJMC and various ministers that his government will "increase its investment in Pakistan in fields like highways and roads, oil & gas, electricity, water, telecom, real estate, financial services, and the social sector. Kuwait owns Karachi Sheraton Hotel.
The two countries are already operating Pak-Kuwait Investment Company (PKIC) that has established Al-Meezan Islamic Bank.
Kuwait and Pakistan have decided to expand their mutual trade to $1.0 billion annually in the next two to three years. The present level of Kuwaiti exports to Pakistan is $750 million.
Pakistani exports to Kuwait are just $50 million. Al-Taweel, in his talks with Pakistani Minister for Commerce Humayun Akhtar proposed that trade between the two countries should be tripled from the existing level. The two sides signed a pact, ratifying Kuwait-Pakistan bilteral trade agreement.