Pakistan and Kuwait signed numerous memorandums of understanding (MoUs) as the struggling South Asian nation seeks multi-billion dollar investment from the Gulf state.
The signing came as caretaker Prime Minister Anwaar-ul-Haq Kakar visited the Gulf state on a two-day visit, where leaders from both sides agreed to bolster bilateral and economic ties, days after Islamabad signed several MoUs with the UAE to attract investment worth billions.
A statement from the PM’s Office mentioned that the interim premier and Kuwait’s First Deputy Prime Minister and Minister for Interior Sheikh Talal Al-Khaled Al-Ahmad Al Sabah underlined the importance of historical brotherly ties between the two countries.
During a meeting, they reaffirmed the desire to strengthen the fraternal ties by transforming them into a mutually rewarding economic partnership. Chief of Army Staff General Asim Munir was also present during the meeting.
The leaders also witnessed the signing of seven agreements concluded to attract multi-billion dollars in investment from Kuwait in various sectors of Pakistan — including food security, agriculture, hydel power, water supplies, the establishment of mining fund to support mineral industry, technology zones development, and mangrove preservation.
In addition, three MoUs in the fields of culture and art, environment, and sustainable development were also signed. The leaders expressed great satisfaction at the trajectory of relations, agreed to remain in close contact, and take swift steps in further strengthening and deepening Pakistan-Kuwait relations.
The prime minister termed these agreements with Kuwait another milestone in the achievements that the Special Investment Facilitation Council (SIFC) platform was bringing to the country.
Pakistan’s economy is in dire straits with its foreign reserves depleting quickly amid less inflows from overseas investors. According to a report by BMI Research, a Fitch Solutions company, the Pakistani rupee (PKR) is expected to continue its downward spiral and reach a historic low of 350 per dollar by the end of 2024.
The country was on the brink of default last year, but it was averted after the International Monetary Fund (IMF) approved a short-term bailout with strict conditions — pushing the inflation up as Pakistan underwent several structural reforms, which saw an increase in gas, energy, and petrol prices.
