Image by Lemon_tm/ iStock
Kuwait extended an oil credit facility to Pakistan for an additional two years, Pakistan's petroleum ministry said, a move that will help the South Asian nation manage energy imports while maintaining its foreign exchange reserves.
The extension marked the first time Kuwait has prolonged the credit facility for two years. It typically grants Pakistan one-year extensions.
Pakistan says its economy has stabilised under a $7 billion International Monetary Fund bailout that helped stave off a default threat.
But with energy imports representing a major drain on foreign exchange, the government relies on credit facilities and rollovers to maintain reserve levels.
In February, Saudi Arabia, through the Saudi Fund for Development, extended a $1.2 billion financing facility for the import of oil derivatives for a year. The SFD has provided approximately $6.7 billion to Islamabad for oil derivatives since 2019. -Reuters