Kuwait And Middle East Investors Eye Pakistan With Great Interest
Kuwait–Investors of Kuwait and the Middle East are eyeing Pakistan with great interest. Reyadh Edrees, CEO of Kuwait’s multibillion-dollar conglomerate National Industries Group, claims there is huge potential in Pakistan.
The CEO reportedly said, “My company has been working with businesses in Pakistan for over two decades and there is huge potential.” He was on a visit to the South Asian nation along with a delegation of majority shareholders of K-Electric.
The interest of the Middle East investors in Pakistan
During the visit, he highlighted the interest of the Middle East investors in Pakistan. The delegation of shareholders emphasised its commitment to investing in Karachi. The delegation represented the consortium of Saudi and Kuwaiti investors, which holds the majority shares in K-Electric.
The CEO also revealed that more than $4 billion had been invested to improve Karachi’s power network. Reportedly, over the past 16 financial years, K-Electric’s net profit has reached Rs 60.5 billion. The investors spent all their profit on Karachi’s power network.
According to The Express Tribune, Pakistan Prime Minister Shehbaz Sharif and federal ministers for power and finance assured the delegation of K-Electric’s investors of supporting the sale of K-Electric’s shares to Shanghai Electric.
Kuwait’s investment in Pakistan
In May, Enertech and Pakistan Kuwait Investment Company formed an alliance to explore opportunities in Pakistan. Pakistan Kuwait Investment Company was established in 1979 by the governments of Pakistan and Kuwait.
Kuwait Investment Authority’s Enertech Holding Co. and Pakistan Kuwait Investment Company are already working on a $200 million water pipeline.
Both companies have also applied for a digital bank license and proposed a hydrogen plant. Kuwait-backed units are also planning several projects in Pakistan valued at $750 million, which is the largest proposed investment in recent years.
Recently, Sindh Chief Minister, Murad Ali Shah, also announced that the provincial government will pitch Karachi as an investment destination to investors from Gulf countries.