Pakistan and Kuwait to Sign $25 Million Loan Agreement for Mohmand Dam

Pakistan and Kuwait to Sign $25 Million Loan Agreement for Mohmand Dam

Pakistan and Kuwait will sign a $25 million loan agreement for the Mohmand Dam on June 3, 2024, marking a significant step in enhancing bilateral relations.

The 5th Session of the Pakistan-Kuwait Joint Ministerial Commission (JMC), held from May 28 to 30, 2024, in Kuwait, marked a significant milestone in Pakistan-Kuwait bilateral relations.

Chaired by Abdul Aleem Khan, Pakistan’s Minister for Privatization, and Omar Saud Al-Omar, Kuwait’s Minister for Commerce and Industry, the session culminated in an agreement to sign a $25 million loan for the Mohmand Dam on June 3, 2024.

Key Agreements and Collaborations

The Kuwait Fund for Arab Economic Development assured its support for engaging the Arab Coordination Group in financing the Diamer Bhasha Dam and expressed willingness to consider Pakistan’s request to finance the Kachhi Canal project.

Abdul Aleem Khan emphasized the importance of private sector engagement in strengthening economic ties and urged Kuwait to streamline visa procedures for Pakistanis, highlighting Pakistan’s skilled workforce.

Key Outcomes of the 5th Session of the JMC

ProjectFunding AmountSourceKey Support Areas
Mohmand Dam$25 millionKuwait FundInfrastructure, Water Management
Diamer Bhasha DamTBDArab Coordination GroupLarge-Scale Hydro Projects
Kachhi Canal ProjectTBDKuwait FundIrrigation, Agricultural Development

Enhancing Bilateral Cooperation

The high-level Pakistani delegation included representatives from various key ministries, such as Economic Affairs, Foreign Affairs, Commerce, Overseas Pakistanis, and HRD.

Ziad Abdullah Al-Najem, undersecretary of the Ministry of Trade & Industry, warmly welcomed the Pakistani delegation and emphasized the session’s pivotal role in advancing bilateral relations.

Abdul Aleem Khan expressed contentment regarding the JMC’s convening and highlighted the focal points of bilateral discussions.

He invited Kuwaiti investors to leverage Pakistan’s Special Investment Facilitation Council, identifying key sectors ripe for investment.

Dr. Kazim Niaz, Secretary of the Ministry of Economic Affairs and head of the technical delegation, emphasized the JMC’s potential in augmenting trade and fostering cooperation in education, science, and culture.

He praised Kuwait’s investment in Pakistan’s strategic sectors and expressed optimism for mutual economic and cultural benefits.

Sectors Discussed for Cooperation

SectorFocus Areas
Commerce and TradeBilateral Trade Enhancements
Food Security & LivestockSustainable Agriculture Practices
Maritime & PortsInfrastructure Development
Industries & ProductionIndustrial Growth and Innovation
InvestmentAttracting Foreign Direct Investment (FDI)
Energy, Oil & Natural ResourcesRenewable Energy Projects
Overseas EmploymentLabor Market Cooperation
VisaStreamlined Visa Procedures
Higher EducationAcademic Exchange Programs
Science & TechnologyJoint Research and Development (R&D) Initiatives
Banking & FinanceFinancial Sector Collaboration
TaxationAvoidance of Double Taxation Agreements
Arts and CultureCultural Exchange Programs
Sports & TourismPromoting Tourism and Sports Collaboration
HealthHealthcare Initiatives
Information & BroadcastingMedia Partnerships
Development CooperationJoint Development Projects

Future Prospects

During the JMC proceedings, several Memoranda of Understanding (MoUs) and agreements were signed in fields such as industrial cooperation, engineering councils, and news exchange.

Consensus was reached to formalize MoUs for collaboration in agriculture, maritime, and ports, avoidance of double taxation, quality and safety standards, and higher education.

Abdul Aleem Khan expressed gratitude to Kuwait for hosting the 5th Session of the JMC and acknowledged the diligent efforts of experts from both nations. He looked forward to the 6th Session of the JMC in Islamabad, anticipating significant progress in all areas of mutual interest.

Omar Saud Al-Omar reiterated Kuwait’s unwavering commitment to implementing the discussed measures, reaffirming the mutual determination to foster a dynamic partnership between Pakistan and Kuwait.

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