In a major development, Enertech Holding Company KSC (Enertech), a subsidiary of Kuwait Investment Authority, announced on Monday that it has entered into a strategic alliance agreement with Pakistan Kuwait Investment Company (Private) Limited (PKIC) worth $750 million.
The objective of the strategic alliance is to collaborate and jointly explore investment opportunities primarily within Pakistan, and undertake infrastructure and green energy initiatives in the country.
“Embarking on this alliance, both Enertech and PKIC have paved the way for future projects to support infrastructure development and green energy initiatives in Pakistan,” read a statement. “Besides bringing in much-needed foreign investment, this alliance shall enable advancement in the digital and technology space in tandem with supporting financial inclusion and gender diversity,” it added.
The agreement was inked by Abdullah Al Mutairi, CEO Enertech Holding Company, and Mohammad Al Fares, chairman of PKIC.
Speaking on this landmark initiative, Yasser Malik, CEO of Enertech Pakistan, emphasised that this collaboration is instrumental to addressing energy security and sustainability in Pakistan.
"EnerTech and PKIC are collaborating on several projects including digital banking, green hydrogen, water security and smart cities.”
Kuwaiti companies planning $750mn projects in Pakistan: report
The development would give a major push to the dollar-hungry South Asian country that has seen a massive decline in its foreign exchange reserves in recent months owing to imports and debt payments. It is also keen to attract foreign direct investment (FDI), which declined by 2% during the first nine months of this fiscal year (FY22). Pakistan fetched FDI amounting to $1.285 billion during July-March of FY22 as against $1.311 billion in the same month of the previous fiscal year (FY21).
“The strategic alliance would bring much-needed FDI inflows to Pakistan,” said Khalid Faiz, Chief Financial Officer (CFO) EnerTech Pakistan. He added that the partnership will remain till completion of the projects.
The two companies are already working on a $200-million water pipeline.
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