ISLAMABAD, Feb 20: The Kuwait Development Fund on Friday broke its five-year "interlude" in their funding activities in Pakistan by offering assistance for infrastructure projects in this country.
At the same time it has promised on behalf of the Kuwait government to assist in getting for Pakistan the dialogue partner status in the Gulf Cooperation Council (GCC).
Finance Minister Shaukat Aziz and Kuwaiti Minister for Commerce and Industry Abdullah Abdul Rehman al-Taweel told a news conference here at the conclusion of the Joint Ministerial Commission (JMC) meeting that they had left behind a couple of years of 'lull' in their bilateral relations.
The KDF had discontinued funding projects in Pakistan after it developed serious differences with Islamabad on bilateral debt restructuring terms under debt re-profiling by the Paris Club in 1999.
The Kuwaiti minister said the Fund was back in business with Pakistan after the resolution of certain issues with the Pakistan government, and to begin with, it would fund Lyari Expressway project.
The Kuwait Development Fund was facing certain problems with the government of Pakistan which have been resolved and now it would fund projects in Pakistan on highly concessional terms, Finance Minister Shaukat Aziz said.
Rehman al-Taweel said in all some six projects were brought up by the Pakistan government and foremost priority was given to the Lyari project which "we have agreed to fund and modalities would be worked soon".
The Kuwaiti minister said Pakistan's private sector should consider Kuwait as a hub of economic activity in the Gulf region and consider it as a bridge to be used for reaching Iraq for a share in its reconstruction.
"As an ally of the US, Kuwait has got many projects going in Iraq and we urge Pakistani businessmen to take advantage of the situation, and if they like they can come independently or enter into joint ventures with Kuwaiti private sector, but transparency and fair business is the name of the game in Kuwait."
He said Kuwait would also plead for Pakistan's case, which is "our ally and a trusted friend in the GCC" to make Pakistan an active partner for trade and economic activity in the Gulf.
"We are increasing the trade in the GCC, and as we have done with India we would take Pakistan aboard as well and for the purpose I will talk to the secretary general of GCC," he said.
The minister said the Kuwait Development Fund was willing to come forward and act as active player in projects in Pakistan. "Currently, the Fund's portfolio is around $245 million for 12 projects in Pakistan and we would see that it expands now," he said, adding highways had been put in the priority list by Pakistan and if more projects in other sectors were put in this list that would also be taken care of.
Responding to a question regarding Kuwait's interest in the privatization of Pakistan State Oil, the visiting minister said that they had also discussed this and had also expressed interest in Pakistan's privatization programme, particularly in oil and communications sectors.
Rehman al-Taweel said both the governments should push the private sectors in their respective countries to interact and get involved in business activity in each others' country with the governments only facilitating and regulating them.
Shaukat Aziz appreciated the Kuwaiti government's interest in Pakistan, particularly through the Kuwait Development Fund and said that Pakistan offered a number of opportunities for investment for both the private and public sectors of Kuwait.
He said during the second Joint Economic Commission since its coming into being in 1999, the Kuwaiti minister had informed Islamabad that Kuwait would increase its investment in Pakistan in the areas of infrastructure, especially roads, power, water, telecommunications and the social sector.
Mr Aziz said: "We have sought cooperation from Kuwait to act as a bridge for getting a share for Pakistan's private sector in the reconstruction of Iraq." "On the labour front, we have informed Kuwait that human capital is major strength of Pakistan and Kuwait should encourage taking more workforce from Pakistan.
And we have asked for permission to open branch of a Pakistani bank in Kuwait that will help the workforce already working there to send their remittances through legal means," he said.
"Similarly, Kuwait has also been asked to open up bank here in Pakistan." Mr Aziz said Pakistan had submitted road projects as priority and soon "we would be approaching Kuwait for investment in equities as well."