Pakistan offers Kuwait strategic oil reserves
Pakistan has offered Kuwait the opportunity to build strategic oil reserves in the country to address any future war like situation. At present, Pakistan has no strategic reserves. A United Arab Emirates (UAE) firm, ADNOC, has built such reserves in India, and Pakistan is now looking towards Middle East partners such as Saudi Arabia and Kuwait.
Federal Minister for Petroleum Ali Pervaiz Malik met Kuwaiti Ambassador Nassar Abdulrahman Jasser Almutairi to discuss regional developments and energy cooperation. Both sides agreed to strengthen bilateral relations and explore new opportunities around building strategic storages in Pakistan that could bring mutual benefit.
During the meeting, Pakistani petroleum minister offered Kuwait to build strategic oil reserves in Pakistan.
The government is already discussing a plan for strategic oil reserves with industry stakeholders. The government has collected over Rs1 trillion in petroleum levy from consumers, which was meant to build oil infrastructure, but all governments have spent this money on current expenditure.
The US Iran war exposed Pakistan as the only country in the region without strategic oil reserves for emergencies. The oil industry has also pushed the government to take up the proposal with Saudi Arabia, which emerged as a key partner during the war. Pakistan has signed a defence pact with Saudi Arabia, boosting bilateral ties. Saudi Arabia announced in 2019 that it would set up an oil refinery and build strategic reserves by investing more than $10 billion, but a tussle with the then prime minister, Imran Khan, put the project on the back burner.
During the meeting, the minister expressed gratitude to Kuwait for its timely facilitation in ensuring the safe dispatch of the vessel Khairpur, which reached Pakistan carrying diesel supplies during a challenging period. The vessel transported approximately 45,000 tonnes of diesel and 10,000 tonnes of jet fuel from Kuwait under special approvals, following disruptions caused by the closure of the Strait of Hormuz.
The minister said Pakistan remains committed to peace and stability, adding that the repercussions of the ongoing conflict are being felt across the region and beyond. He noted that, with the concerted efforts of the field marshal and the prime minister, the Khairpurvessel safely reached Pakistan, ensuring continuity in fuel supply and supporting national energy needs.
Ambassador Almutairi appreciated Pakistan's peace efforts and stated that Kuwait encourages its brothers in Pakistan to continue their constructive role for peace. He remarked that Pakistan has proven itself through its responsible stance and is now viewed with a renewed and elevated status in the international community.