KARACHI: Kuwait extended an oil credit facility to Pakistan for an additional two years, Pakistan`s petroleum ministry said on Wednesday, which will help Islamabad manage energy imports while maintaining its foreign exchange reserves.

The extension marked the first time Kuwait has prolonged the credit facility for two years. It typically grants Pakistan oneyear extensions.

Pakistan says its economy has stabilised under a $7 billion International Monetary Fund bailout that helped stave off a default threat.

But with energy imports representing a major drain on foreign exchange, the government relies on credit facilities and rollovers to maintain reserve levels.-Reuters