Pakistan and Kuwait are two brother countries that are tied in strong and durable religious, social, and economic ties. Both countries strive for durable peace, integrity, and sustainability in the region. Pakistani forces took an active part in the liberation of Kuwait along with coalition forces in 1991. Pakistan Army’s engineers were involved in the very difficult and dangerous task of mine clearing in Kuwait. Nine Pakistani soldiers embraced martyrdom while performing this task. There are more than a hundred thousand Pakistanis working in Kuwait and playing very important and laudable roles in the development, progress, security, and integrity of Kuwait. Kuwait always came forward during the difficult moments of Pakistan’s history. It was denoted generously to Pakistan during the devastating and deadly earthquake of 2005 and the devastating flood of 2010. It has contributed about US$ 25 million to the flood affected.
Pakistan Kuwait Trade Statistics
year Imports US$ million Exports US$ million
2008 3,443.54 156.10
2009 1,804.25 109.90
2010 2,609.03 113.60
2011 3,891.13 127.79
2012 4,208.45 126.68
2013 3,948.72 146.18
2014 2,954.18 171.18
2015 1,712.74 188.87
2016 1,271.86 175.37
2017 1,468.13 166.78
2018 1,407.72 172.69
Source: TDAP, SBP
MAJOR CHALLENGES 1: Strict regulation on SPS & TBT 2: Lack Of direct connectivity 3: Unconventional market requiring value added goods
EXPORT POTENTIAL 1: Live sheep 2: Cane or beet sugar 3: Wood charcoal 4: Chickpeas dried & shelled 4: Textile and Garments 5. Sports goods 6. Surgical Instruments 7. Fresh and dried fruits 7.Basmati rice 8. Technical and qualified human resource
Education, economy, trade and investment, people to people linkages are top priorities of the leadership of both countries.
During Covid 19, more than 2,600 Pakistani doctors, nurses, and other paramedics served Kuwaiti brothers and sisters. Kuwait always played very positive, conductive and constructive role in promoting peace, stability and integrity in the region. Pakistan invites Kuwait to invest in Special Economic Zones (SEZ) at CPEC , the joint game changer project of China and Pakistan.
It is interesting to note that Kuwait Foreign Petroleum Exploration Company ( KUFPEC) recognized that there is reality in Pakistani experts claim that Pakistan has 347,848 million barrels of oil and 19,541 trillion cubic feet of gas are recoverable. The fifty-one percent Kuwait-owned PARCO will increase investment in the pipelines to carry diesel and other white products upcountry from Karachi and Bin Qasim reducing traffic on Pakistani highways and the frequent theft when tankers are used. Kuwait also assured the government of Pakistan of its support for the initiative to strengthen Pakistan’s climate resilient program.
The year 2023 is very important for Pakistani-Kuwait relations as Kuwait is celebrating the 60th Anniversary of this friendship which reflects the strength and warmth of relations between the two brother countries.
Kuwait is a very important country in the Middle East and is situated on the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the north and Saudi Arabia to the South. Kuwait also shares maritime borders with Iran. Kuwait has a coastal length of approximately 500 km. Kuwait has a population of about 4.45 million out of which 1.45 million are Kuwaiti citizens while the remaining three million are foreign nationals from over 100 countries.
Kuwait has a wealthy petroleum based economy and is one of the richest countries of the world. According to the World Bank , Kuwait is the fifth richest country in the world by Gross national Income per capita , and one of the five nations with a gross GNI per capita of US$ 7,000. As a result of various diversification policies, Petroleum now accounts for 43% of total GDP and 70% of export earnings. In 2020, Kuwait ranked 4th in MENA region in start up findings after the UAE, Egypt and Saudi Arabia. Its main exporting products are mineral fuel including oil 89% of total exports, aircraft and space crafts 4%, organic chemicals 3% , Plastic 1%.
GDP ( Nominal : US$ 186 billion (2021)
GDP ( PPP) : US$ 245 billion (2021)
GDP Growth : 1.6 % (2021)
GDP per Capita (Nominal): US* 38,755 ( 2022)
GDP per Capita (PPP) : US$ 50,919
Exports : US$ 40.16 billion (2020)
Imports : US$ 28.34 billion
Kuwait has crude oil reserves of about 102 billion barrels and about 6% of the world’s total reserves. Pakistan and Kuwait have signed Bilateral Investment Treaty (BIT) and Double taxation Treaty (DTT). There is a need to sign Free Trade Agreement (FTA) between Pakistan and Kuwait and Pakistan and GCC.
Kuwaiti Companies working in Pakistan
1. Pak Kuwait Takaful Company
2. Kuwait Foreign Petroleum Exploration Company ( KUFPEC)
3. Kuwait Investment Company
There is a need to do serious efforts to further enhancement of trade and investment.