Pakistan and Kuwait are teaming up to create a $1 billion mining fund as part of a calculated move to draw in foreign capital after the Reko Diq project was settled out-of-court. For this fund, a state-owned enterprise in Pakistan has been selected to spearhead the cooperation with Kuwait. Positive first talks have taken place between the two nations; a Kuwaiti business has expressed interest in using minerals and metals mined for renewable energy. This fund will ensure an overall boost of imports and exports of the country.

To further the establishment of the fund, a joint working committee is scheduled to receive a comprehensive strategy that includes dates. To promote international investment, particularly in Baluchistan mineral-rich regions, the Pakistani government is aggressively updating the National Mineral Policy and has already formed a Mineral Cell within the Petroleum Division.

In an attempt to forward the planned fund, a joint working committee would reportedly be provided with a comprehensive working plan complete with deadlines. To attract international investors, the government is thinking of amending the Regulation of Mines and Oilfields and Mineral Development (Govt Control Act, 1948). Experts believed that the main reasons for the decline in foreign investment in Pakistan had been the inconsistent policies and the involvement of anti-corruption watchdogs.

A memorandum of understanding on investment cooperation for the implementation of water supply projects for the development of mines in Chagai and neighboring regions in Baluchistan was signed by Pakistan and Kuwait during the visit of the caretaker prime minister towards the end of last year.

Ending Note:

The goal of the agreement between Pakistan and Kuwait is to encourage and strengthen ties of brotherhood between the two nations while also making investment in Pakistan easier. According to sources, discussions for cooperation in the mining industry were taking place between the governments of Pakistan and the United Arab Emirates. The mining projects that need funding for development are being identified by both parties.

Pakistan is also looking to Saudi Arabia for investment since the kingdom recently hosted a mining conference.