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CPEC makes Pakistan-Kuwait relations back on fame

The Pakistan-Kuwait relations are brotherly based on shared history, traditions and common culture. Both states enjoyed their bilateral, friendly, trade and cultural ties along with enormous respect of their commonality and cultural traditions.

These bilateral relations exist both at the official-governments level and at the peoples’ level. Time has proved that Pakistan-Kuwait have stood for each other in their most difficult and testing times. Kuwait also responded well to its friendly state and has been the first among nations that have ever enlarged generous assist to Pakistan in difficult times.

The Kuwait government donated generously to the Government of Pakistan during the deadly earthquake in 2005 and at the time of devastating floods during 2010. Kuwait has contributed approximately $25 million to floods-affected people in Pakistan.

In addition to this, there are regular visits of Pakistani naval ships to Kuwait.

Pakistan has also trained a number of naval officers of Kuwait in Pakistan. Both states are part of a joint ministerial commission (JMC) – an active body extending its role towards further strengthening and extending their bilateral relations in all fields. JMC of Kuwait and Pakistan provides the best platform to take stock of bilateral cooperation in various economic sectors and set new benchmarks to carry this cooperation forward.

Although bilateral Pakistan-Kuwait political relations historically remain very strong, however their bilateral economic cooperation has not progressed much. There are many causes which characterize the certain geopolitical, strategic and security obstacles.

ECONOMY OF KUWAIT
Details
Last
Reference
Previous
Stock Market
6995 points
Apr/2017
7042
Currency
0.3
Apr/2017
0.3
Inflation Rate
3.22 %
Feb/2017
3.29
Producer Prices
133 Index Points
Sep/2016
130
Consumer Price Index CPI
144 Index Points
Feb/2017
144
CPI Transportation
138 Index Points
Feb/2017
138
Food Inflation
-0.26 %
Feb/2017
0.19
Inflation Rate Mom
-0.07 %
Feb/2017
-0.07
ECONOMY OF PAKISTAN
Details
Last
Reference
Previous
Currency
105
Apr/2017
105
Stock Market
48457 points
Apr/2017
48250
Government Bond 10Y
8.15 %
Apr/2017
8.15
Inflation Rate
4.94 %
Mar/2017
4.22
Consumer Price Index CPI
213 Index Points
Mar/2017
212
Core Inflation Rate
5.3 %
Mar/2017
5.3
GDP Deflator
251 Index Points
Dec/2015
247
Producer Prices
217 Index Points
Mar/2017
216
Export Prices
697 Index Points
Sep/2016
702
Import Prices
1222 Index Points
Sep/2016
1224
CPI Transportation
176 Index Points
Mar/2017
175
Food Inflation
4.64 %
Mar/2017
3.1
Inflation Rate Mom
0.84 %
Mar/2017
0.28

Experts have revealed that bilateral trade volume between both states almost touches $2.5 billion a year, though it is far from satisfactory relative to their size and composition of their domestic production and external trade volumes.

It is also calculated that Pakistan is attracting foreign direct investment (FDI) around $1.5 billion a year and this figure is increasing. Surprisingly, Kuwait’s investment in Pakistan reached at just $21 million in 2016. The trade balance is tilted in Kuwait’s favor as it exports a number of oil products to Pakistan.

During FY2016, Kuwait exports to Pakistan were value $1,333.91 billion. Pakistani exports to Kuwait in the same year were value only $100.28 million.

The government of Kuwait agreed the government of Pakistan’s request to end the eight-year-old ban on issuance of Kuwaiti visas for Pakistanis.

Greater than 114,000 Pakistanis live in Kuwait, of who a large number are highly skilled. The Government of Pakistan urged Kuwaiti investors to invest in Pakistan. All sectors are open to them, also those located on and along the China-Pakistan Economic Corridor (CPEC) route, inside Pakistan, and at any location where the government has organized special economic zones for profitable tax and tariff concessions and to promote production and export. The Government of Pakistan offers cheap land and all services to operate industries.

Pakistan would continue to import a number of oil products and requested the Kuwait government for help. Trade volume needs to be more improved to its full potential, in sectors like agriculture, construction, poultry, livestock and fisheries.

Successive Pakistani ambassadors have tried their best to further strengthen bilateral relations through different seminars/festivals/exhibitions and conferences. The embassy and the Kuwait National Council for Culture, Arts and Letters frequently organized musical events in which Pakistan singer take part.

The Government of Pakistan has offered Kuwait and other regional states, counting the UAE, big investment and trade opportunities as its economy opens up. At the same time, implementation of CPEC projects is on fast track.

CONCLUSION

Kuwait and Pakistan will strengthen bilateral relations by improving cooperation in a number of fields, counting trade and investment. It will be financed by the public and private sectors. The present Government of Pakistan will guarantee protection of investments and 100 percent repatriation of investment and dividends.

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