ISLAMABAD, Feb 19: Pakistan and Kuwait would sign on Friday a joint protocol to fund big development projects in Pakistan's major sectors while Kuwait has also offered to sublet up to $1 billion reconstruction contracts in Iraq to Pakistani companies.

The Kuwait development fund would be extending as much loans as required by the government of Pakistan to fund projects in water, power, telecommunication, infrastructure, agriculture business, housing and real estate, a senior government official said.

Furthermore, Kuwait has also promised to participate in the privatization of oil and gas sector in Pakistan. Pakistan and Kuwait are currently holding joint ministerial commission (JMC) meeting in Islamabad.

Pakistani side is led by Finance Minister Shaukat Aziz while Minister for Commerce and Industry of Kuwait Abdullah Abdul Rahman Al Taweel is leading the Kuwaiti delegation.

"Kuwaiti minister made a very liberal offer to fund as much projects as desired by Pakistan," said the official. Kuwait would also encourage Pakistani businessperson to locate markets in that country to take advantage of its position to penetrate the market of Gulf Cooperation Council (GCC) countries.

The Kuwaiti minister said that his country was playing a lead role in the reconstruction of Iraq and Pakistani businessperson should team up with their Kuwaiti counterparts to jointly find opportunities in the reconstruction of Iraq.

Abdullah Abdul Rehman recalled close brotherly relations between the two countries and Pakistan's support to brotherly people of Kuwait during Iraqi occupation and said that Pakistan has stood by the people of Kuwait in the time of need.

He also appreciated Pakistan's economic growth and complimented its economic team for implementing far reaching economic, financial and structural reforms to transform its economy.

He said that Kuwait through Kuwait Development Fund would increase investment in the country in infrastructure, especially roads, power, water, telecommunications and social sector. He also indicated to increase its in-take of Pakistani manpower.

Kuwait would participate in privatization programme of Pakistan through bidding and would explore possibilities of investing in telecommunication, real estate and oil and gas sectors.

Finance Minister Shaukat Aziz said Kuwait was an important development partner and exporter of capital, which could increase its investment in financial sector especially in capital market and housing sector.

He appreciated Kuwait's assistance of over $209 million, which it had provided to Pakistan in the aftermath of nuclear tests which has now been rescheduled on soft term. He hoped that this assistance would increase manifold.

He also noted over 74 million Kuwaiti Dinar investment by Pak-Kuwait Investment Company. He said that Pak-Kuwait Investment Company and Al-Meezan Bank could tap more investment opportunities in Pakistan and participate in Pakistan's economic growth.

The two sides also discussed ways to increase cooperation between the private sectors of the two countries to tap investment potentials and increase economic and trade relations.

Shaukat Aziz also invited Kuwait to participate in Pakistan Development Forum to identify areas of cooperation and investment potential. He said Pakistan would encourage interaction between private sectors of Pakistan and Gulf Cooperation Council at both bilateral and multilateral level.