ISLAMABAD, 20 June 2006 — Pakistan and Kuwait yesterday signed an agreement and two Memorandums of Understanding (MOUs) to strengthen trade, economic, investment and commercial ties.
The accords were signed after talks between the visiting Kuwaiti Emir Sheikh Sabah Al-Ahmad Al-Sabah and Pakistani President Pervez Musharraf in Islamabad.
Sheikh Sabah, who arrived in Islamabad yesterday on a two-day official tour, last visited Pakistan in 1993 in his capacity as deputy prime minister, and in 1997 as foreign minister.
“Kuwait will set up an oil refinery at Port Qasim in the southern city of Karachi under one of the two MOUs signed by senior officials of the two countries,” Radio Pakistan said.
Pakistan’s total crude oil requirement is about 240,000 barrels per day. Of this, around 177,000 barrels are imported and the rest is produced locally.
Kuwait is a principal source of oil and petroleum products for Pakistan. However, Saudi Arabia remains the major oil supplier to Pakistan, with about 110,000 barrels of crude oil supply per day, while Dubai and Qatar export 60,000 barrels.
During the talks, President Musharraf said his country would welcome Kuwait’s participation in the development of the Gwadar deep sea port currently being built in the southwestern Balochistan province, adding, the port would serve as trade and energy corridor for the region.
Musharraf briefed Sheikh Sabah on Pakistan’s plans to facilitate regional commerce and trade through the port, which offers overland links with the South Asia, Central Asia and western parts of China with the Gulf region.
He said Pakistan would also welcome Kuwaiti investment in building infrastructure including oil storage facilities and warehouses at the Gwadar port.
Kuwait is Pakistan’s third-largest economic partner in the Gulf Cooperation Council (GCC) after Saudi Arabia and the UAE.
The Kuwait Fund for Arab Economic Development is currently financing seven projects worth 245 million dollars in Pakistan.
Around 125,000 Pakistani expatriates are currently working in Kuwait and constitute a significant source of foreign exchange to the country.
The Kuwaiti emir is also scheduled to meet Prime Minister Shaukat Aziz and address a business conference today.
Foreign Office spokeswoman Tasnim Aslam earlier said ,”Other than two memorandums of understanding that the two countries will sign to promote investment, one more MOU will be signed for the promotion of education and IT development.
Prime Minister Aziz has said recently the issue of increasing manpower export to Kuwait would be taken up with the Kuwaiti emir.
Sheikh Sabah’s entourage comprises senior Cabinet ministers as well as leading entrepreneurs and investors.
Around 125,000 Pakistani expatriates are currently working in Kuwait and constitute a significant source of foreign exchange to the country.
