Pakistan, Kuwait agree to strengthen links between Gwadar, Mubarak Al Kabeer ports 

Kuwait’s Minister of Foreign Affairs Dr Ahmed Nasser Al-Mohammed Al-Sabah (left) addresses a press conference along with his Pakistani counterpart Shah Mahmood Qureshi in Islamabad, Pakistan, on March 18, 2021. (AN Photo)
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Updated 19 March 2021
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Pakistan, Kuwait agree to strengthen links between Gwadar, Mubarak Al Kabeer ports 

  • Pakistani foreign minister Qureshi holds press conference in Islamabad with Kuwaiti FM Dr. Ahmed Nasser Al-Mohammed Al-Sabah
  • Says volume of trade between the two countries, around one billion dollars, “not up to the potential, huge room to increase”

ISLAMABAD: Pakistan and Kuwait on Thursday agreed on a roadmap for future engagement to strengthen bilateral cooperation, resolve visa issues and develop linkages between Pakistan’s southern port of Gwadar and Kuwait’s Mubarak Al Kabeer Port.
Gwadar, in the southwestern province of Baluchistan, is the crown jewel of China’s $60 billion investment in Belt and Road Initiative projects in Pakistan.
The plan is to turn Gwadar into a trans-shipment hub and megaport to be built alongside special economic zones from which export-focused industries will ship goods worldwide. A web of energy pipelines, roads and rail links will connect Gwadar to China’s western regions.
Mubarak Al Kabeer Port is a proposed project in the largest island in the Kuwaiti coastal island chain, Bubiyan Island. Some economists think the port could eventually become a rival to Iraq’s Umm Qasr.
“We have set ourselves a vision for engagement for the future,” Pakistani foreign minister Shah Mahmood Qureshi said in a joint press conference in Islamabad with his Kuwaiti counterpart Dr. Ahmed Nasser Al-Mohammed Al-Sabah.
“We have looked at areas where investment can be promoted. We looked at developing linkages between Gwadar and Mubarak Al Kabeer Port in Kuwait.”

The Pakistani foreign minister said the volume of bilateral trade between the two countries, which stood at around one billion dollars, “is not up to the potential and there existed a huge room to increase the volume.”
He also appreciated the role of his Kuwaiti counterpart in agreeing on a mechanism to resolve long standing visa issues. 
On Wednesday, Pakistan’s Interior Minister Sheikh Rashid Ahmed said Kuwait would resume issuing visas for Pakistanis, suspended in 2011 over security concerns. 
“Pakistan and Kuwait agreed to enhance cooperation in all fields of life,” Al-Sabah said at the presser. “There are lots of areas of cooperation which are untapped so this is what we are concentrating on in the new roadmap which is meant to set a target and vision for the future.”
He said he had come to Pakistan to resolve the visa issue and “now through this proposed mechanism, this issue will be solved once and for all.” He said the skilled labor force of Pakistan was contributing immensely to Kuwait’s development and “we are proud of all of them.”
Speaking about Pakistan’s help during the coronavirus pandemic, the Kuwaiti foreign minister said Islamabad had sent highly skilled and professional medical teams to Kuwait “and we are looking for more cooperation in the medical field.” 
Al-Sabah also said Kuwait wanted to explore future investment opportunities and enhance bilateral cooperation with Pakistan in the fields of health, education, information technology, petroleum and food security.
“We would like for our relationship to be more institutionalized,” the foreign minister said, “and this was the core of our meetings [in Pakistan].”


IMF board approves $1.3 billion disbursement for Pakistan after completing loan reviews

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IMF board approves $1.3 billion disbursement for Pakistan after completing loan reviews

  • The approval comes after an October staff-level deal that awaited the board’s formal endorsement
  • Economists say the money will boost Pakistan’s forex reserves, send positive signals to investors

KARACHI: The International Monetary Fund’s (IMF) executive board approved the release of $1.3 billion for Pakistan under two of its loan facilities, the Pakistani state media reported on Monday.

The board meeting was scheduled to take place during the day to decide on the Fund’s second review under the $7 billion Extended Fund Facility (EFF) and first review under the $1.4 billion Resilience and Sustainability Facility (RSF), a financing tool that provides long-term, low-cost loans to help countries address climate risks.

“The IMF executive board meeting has approved the third tranche of the loan program amounting to $1.3 billion,” the state-owned Pakistan Television reported.

It described the development as a major boost for Pakistan’s economy.

The IMF executive board’s meeting came nearly two months after a staff-level agreement (SLA) was signed between the two sides in October.

Procedurally, the SLAs are subject to approval by the executive board, though it is largely viewed as a formality.

A senior finance ministry official also confirmed to Arab News on condition of anonymity that the IMF had approved the tranche.

Economic experts said earlier in the day that the IMF disbursements would help Pakistan strengthen its balance of payments position.

Samiullah Tariq, group head of research at Pakistan Kuwait Investment Company Limited, said the IMF board’s approval would be an indication that Pakistan’s economy is on the right path.

“It obviously will help strengthen [the country’s] external sector, the balance of payments,” he told Arab News.

Until recently, Pakistan grappled with a macroeconomic crisis that drained its financial resources and triggered a balance of payments crisis.

However, the country witnessed financial gains in the last two years, recording current account surpluses and taming inflation that touched unprecedented levels in mid-2023.

Economists also viewed the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders.

Saudi Arabia, through the Saudi Fund for Development, last week extended the term of its $3 billion deposit for another year to help Pakistan boost its foreign exchange reserves, which stood at $14.5 billion as of November 28, according to State Bank of Pakistan statements.

“In our view this [IMF tranche] will be approved,” said Shankar Talreja, head of research at Karachi-based brokerage Topline Securities Limited.

“This will help strengthen reserves and will eventually help a rating upgrade going forward,” he said.

The IMF board’s nod, Talreja said, would also send a signal to international and local investors regarding the continuation of the reform agenda by Pakistan’s government.