Saudi Arabia and Pakistan have signed a loan agreement worth $240m to support the Mohmand Multipurpose Dam Project, according to a statement released by the Ministry of Economic Affairs. The signing ceremony was attended by Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development (SFD), Kazim Niaz, Federal Secretary for the Ministry of Economic Affairs, and Nawaf bin Said Al-Malki, Saudi Ambassador to Pakistan.
The project aims to provide a major hydropower complex to contribute to Pakistan’s energy security, increase sustainable water supply for agriculture and human consumption, and improve resilience to floods. The project will also generate 800MW of electricity production capacity by using renewable energy sources.
Co-financed by SFD, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, the project aligns with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals).
The statement noted that the project is expected to enhance water and food security, and improve the standard of living for people in Khyber Pakhtunkhwa, where almost 80% of the population resides in rural areas, boosting the region’s socioeconomic development by creating employment opportunities and reducing poverty levels.
During the signing ceremony, the CEO of SFD expressed that this initiative is an extension of the fund’s continued support for development projects and programmes in Pakistan since its inception. He also highlighted the significance of joint cooperation between development funds, as evidenced by this project.
Dr Niaz expressed his sincere appreciation and gratitude to the Kingdom of Saudi Arabia for its unwavering support towards the development sector in Pakistan through the SFD.
