Pakistan and Kuwait have reaffirmed their commitment to strengthening bilateral relations and expanding economic cooperation across several key sectors, including trade, investment, energy and development.
The commitment came during a meeting between Prime Minister Shehbaz Sharif and his Kuwaiti counterpart, Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, on November 11 on the sidelines of the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye.
According to Pakistan’s Prime Minister’s Office, the two leaders discussed ways to strengthen cooperation in trade, investment, energy projects, development and people-to-people exchanges. They also reviewed regional and international developments, including regional security challenges and the effects of climate change.
Both prime ministers expressed their resolve to translate longstanding political and diplomatic relations into stronger economic and business partnerships. They also welcomed the recent ratification of a defence cooperation agreement by both countries, expressing hope that it would further strengthen bilateral ties.
PSO and Kuwait Petroleum Expand 50-Year Energy Partnership
Separately, Pakistan State Oil (PSO) and Kuwait Petroleum Corporation (KPC) have agreed to expand their longstanding energy partnership, which spans five decades.
The agreement followed meetings between senior officials of the two state-owned companies in Kuwait. The PSO delegation was led by Chief Executive Officer Jawwad Ahmed Cheema, while the KPC delegation included senior executives Shaikh Nawaf Saud Al-Sabah and Shaikh Khaled Ahmad Al-Sabah.
Both companies agreed to continue existing arrangements for supplying gasoil and jet fuel from Kuwait to Pakistan, while reviewing commercial terms in line with prevailing market conditions.
They will also explore additional supplies of motor gasoline and petrochemicals, alongside cooperation in base oil supplies and lubricant marketing.
Kuwait to Explore Pakistan’s Fuel Storage and Port Facilities
One of the key areas of expanded cooperation involves the use of Pakistan’s petroleum storage and port infrastructure.
Under the proposed arrangement, KPC will utilise Pakistan’s storage and port facilities under the government’s revised Customs Bonded Storage Policy. The framework allows international suppliers to store petroleum products in customs-bonded facilities for domestic sales or re-exports to regional markets.
The arrangement could expand Pakistan’s role in regional petroleum trade while creating additional commercial opportunities in storage, shipping and logistics.
However, the remaining procedures and documentation must be completed with the relevant Pakistani departments and institutions before implementation. The companies have not yet announced specific storage locations, product volumes or an operational start date.
Potential Investment in Refining, Gas and Logistics
PSO and KPC also discussed potential Kuwaiti investment in Pakistan’s energy sector, including gas, refining, storage infrastructure, shipping and logistics.
The discussions reflect an effort to expand cooperation beyond conventional fuel supply arrangements and develop a broader commercial partnership across the energy value chain.
PSO said KPC’s interest in Pakistan’s storage and port infrastructure could create opportunities to strengthen energy security, facilitate regional trade and attract investment.
The two companies also reaffirmed their commitment to developing the partnership over the coming decades. PSO invited KPC’s senior management to visit Pakistan early next year to mark the partnership’s 50th anniversary.
Strengthening Pakistan-Kuwait Economic Relations
The latest developments reflect renewed efforts by Pakistan and Kuwait to expand cooperation beyond their longstanding diplomatic relations.
The prime ministers’ discussions provide a broader framework for stronger trade, investment and development ties, while the PSO-KPC understanding identifies specific commercial opportunities in the energy sector.
If implemented, the proposed fuel supply, storage, refining and investment initiatives could support Pakistan’s energy infrastructure, diversify commercial arrangements and strengthen its position in regional petroleum trade.
Both countries have expressed their commitment to turning longstanding bilateral ties into practical economic cooperation and mutually beneficial investment.
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