Pakistan approves $95mln grant to overcome losses in Kuwaiti diesel credit facility

Employees at a fuel station wait for customers in Islamabad, Pakistan on February 16, 2022, after a hike in prices of petroleum products. (AFP/File)
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Updated 21 March 2023
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Pakistan approves $95mln grant to overcome losses in Kuwaiti diesel credit facility

  • Islamabad has incurred huge losses on the facility due to rupee-dollar parity over the past year
  • Cash-strapped Pakistan is currently looking to secure cheaper energy imports due to forex crunch

ISLAMABAD: The Pakistani government on Tuesday approved an additional grant of $95 million to overcome losses in a Kuwaiti diesel credit facility, the Pakistani finance ministry said, citing heavy exchange losses due to rupee-dollar parity over the last one year. 

The statement came after a meeting of the Economic Coordination Committee (ECC) of the cabinet, wherein the Pakistani energy ministry submitted a summary on credit facility from Kuwait. 

Under the facility, the state-owned Pakistan State Oil deposits an amount in rupee equivalent with the National Bank of Pakistan every 30 days from the bill of lading date of each shipment and transfers the cargo cost to the Kuwait Petroleum Corporation (KPC), a Kuwaiti national oil company.  

"This account has witnessed huge exchange losses due to upheaval in the rupee-dollar parity during the last 12 months," the finance ministry said in a statement. 

"The GoP (Government of Pakistan) is committed to cover these exchange losses. Considering the above situation, the ECC approved an immediate technical supplementary grant of Rs27 billion ($95.8 million) for the Kuwait petroleum company."

Pakistan has been utilizing the KPC credit facility on the supply of diesel under a term contract with the PSO since 2000. The contract is renewed every year.

The cash-strapped South Asian country, which imports most of its energy needs, is currently looking to secure cheaper imports due to a severe foreign exchange crunch.

In view of Pakistan’s deteriorating economic conditions and its forex reserves depleting to critically low levels, Russia said in January it would allow Islamabad to pay for energy imports in currencies of friendly countries.

Pakistan is expected to start receiving cheaper Russian energy imports early next month.


US freezes visa processing for 75 countries, media reports Pakistan included

Updated 14 January 2026
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US freezes visa processing for 75 countries, media reports Pakistan included

  • State Department announces indefinite pause on immigrant visas starting Jan 21
  • Move underscores Trump’s hard-line immigration push despite close Pakistan-US ties

ISLAMABAD: The United States will pause immigrant visa processing for applicants from 75 countries starting Jan. 21, the State Department said on Wednesday, with Fox News and other media outlets reporting that Pakistan is among the countries affected by the indefinite suspension.

The move comes as the Trump administration presses ahead with a broad immigration crackdown, with Pakistan included among the affected countries despite strong ongoing diplomatic engagement between Islamabad and Washington on economic cooperation, regional diplomacy and security matters.

Fox News, citing an internal State Department memo, said US embassies had been instructed to refuse immigrant visas under existing law while Washington reassesses screening and vetting procedures. The report said the pause would apply indefinitely and covers countries across Asia, Africa, the Middle East, Europe and Latin America.

“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the Department of State said in a post on X.

According to Fox News and Pakistan news outlets like Dawn, the list of affected countries includes Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil and Thailand, among others. 

“The suspension could delay travel, study, and work plans for thousands of Pakistanis who annually seek US visas. Pakistani consulates in the US are expected to provide guidance to affected applicants in the coming days,” Dawn reported.

A State Department spokesman declined comment when Arab News reached out via email to confirm if Pakistan was on the list. 

The Department has not publicly released the full list of countries or clarified which visa categories would be affected, nor has it provided a timeline for when processing could resume.

Trump has made immigration enforcement a central pillar of his agenda since returning to office last year, reviving and expanding the use of the “public charge” provision of US immigration law to restrict entry by migrants deemed likely to rely on public benefits.

During his previous term as president, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in US courts before a revised version was upheld by the Supreme Court. That policy was later rescinded under the President Joe Biden administration.

The latest visa freeze marks a renewed hardening of US immigration policy, raising uncertainty for migrants from affected countries as Washington reassesses its screening and vetting procedures. 

The freeze on visas comes amid an intensifying crackdown on immigration enforcement by the Trump administration. In Minneapolis last week, a US Immigration and Customs Enforcement (ICE) agent shot and killed 37-year-old Renee Good, a US citizen, during a federal operation, an incident that has drawn nationwide protests and scrutiny of ICE tactics. Family members and local officials have challenged the federal account of the shooting, even as Department of Homeland Security officials defended the agent’s actions. The case has prompted resignations by federal prosecutors and heightened debate over the conduct of immigration enforcement under the current administration.