Pakistan Signs MoUs With Kuwait to Attract Investments

Pakistan inked several memorandums of understanding (MoUs) with Kuwait on Wednesday in a bid to attract substantial investment from the Gulf country, as Pakistan seeks foreign funds to revitalize its struggling economy.

This development occurred during the visit of caretaker Prime Minister Anwaar-ul-Haq Kakar to Kuwait for a two-day trip. Both sides expressed their commitment to strengthening bilateral and economic ties. This follows Pakistan’s recent signing of MoUs with the UAE to attract investments worth billions.

Pakistan is grappling with a precarious economic situation, witnessing a rapid depletion of foreign reserves amid reduced inflows from overseas investors. Analysts predict a further decline in the Pakistani rupee, anticipating it to reach 350 by the end of 2024, making it the worst-performing currency of the year.

Last year, Pakistan narrowly avoided default after securing a short-term bailout from the International Monetary Fund (IMF) with stringent conditions. This led to increased inflation as the country underwent structural reforms, including hikes in gas, energy, and petrol prices.

A statement from the PM’s Office highlighted the meeting between the interim prime minister and Kuwait’s First Deputy Prime Minister and Minister for Interior Sheikh Talal Al-Khaled Al-Ahmad Al Sabah. They emphasized the historical brotherly ties between the two nations and expressed a mutual desire to transform these ties into a rewarding economic partnership. The Chief of Army Staff General Asim Munir also attended the meeting.

Seven agreements were signed to attract multi-billion dollars in investment from Kuwait across various sectors in Pakistan, including food security, agriculture, hydel power, water supplies, the establishment of a mining fund to support the mineral industry, technology zones development, and mangrove preservation. Additionally, three MoUs were signed in the fields of culture and art, environment, and sustainable development.

The leaders expressed satisfaction with the trajectory of relations, pledging to remain in close contact and take swift steps to further strengthen and deepen Pakistan-Kuwait relations. The caretaker prime minister hailed these agreements with Kuwait as another milestone achieved through the Special Investment Facilitation Council (SIFC) platform.

During the visit, the caretaker prime minister also extended prayers for the good health of Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, the Emir of Kuwait.