Kuwait seeks to invest $750m in Pakistan projects

ISLAMABAD: Kuwait-backed units are planning several projects in Pakistan valued at $750 million, marking one of the largest proposed investments in the South Asian country in recent years.

Kuwait Investment Authority’s Enertech Holding Co. and Pakistan Kuwait Investment Company have applied for a digital bank license and

proposed a hydrogen plant and two smart cities, said Mohammad Al Fares, chairman at Pakistan Kuwait Investment Co. The two are already working on a $200 million water pipeline.

The proposed investments are a boon for Pakistan, which has seen muted foreign investment for more than a decade because of energy outages, terrorism and political instability.

Recent turmoil has led to a regime change while the nation’s foreign exchange reserves have dropped to less than two months of imports.

Enertech and Pakistan Kuwait Investment Company have formed an alliance to explore opportunities in Pakistan, said Al Fares. The latter was established in 1979 by the governments of Pakistan and Kuwait, and holds multiple investments including a 30% stake in Meezan Bank Ltd., Pakistan’s fastest growing bank by deposits.