Kuwait has extended its deferred oil payment facility to Pakistan for an additional two years, providing crucial support for Pakistan’s energy imports and foreign exchange reserves.
Under this arrangement, Pakistan State Oil (PSO) will continue to import three oil cargoes per month from Kuwait on 90-day deferred payment terms. This amounts to approximately 1.8 million tons of oil annually, offering Pakistan significant breathing room in managing its energy import bill.
The extension was finalized during a meeting between Federal Minister for Petroleum Ali Pervaiz Malik and Kuwaiti Ambassador Nassar Abdulrahman J Almutairi, according to official sources.
“This credit line plays a vital role in stabilizing Pakistan’s energy imports and helps manage foreign exchange outflows,” a ministry official explained.
During the meeting, Ambassador Almutairi expressed appreciation for Pakistan’s recent economic progress and reaffirmed Kuwait’s commitment to expanding bilateral cooperation in energy and investment sectors.
The discussions also covered potential new areas of collaboration, with Minister Malik welcoming Kuwait Foreign Petroleum Exploration Company’s (Kufpec) interest in participating in Pakistan’s offshore exploration blocks.
This extension comes at a critical time for Pakistan’s economy, which continues to face challenges in managing its current account deficit and foreign exchange reserves. The deferred payment facility helps reduce immediate pressure on foreign currency reserves while ensuring steady oil supplies for the country’s energy needs.
