ISLAMABAD: Pakistan and Kuwait on Thursday signed a second loan agreement worth Kuwaiti Dinar 7.5 million (about US$25 million) for the Mohmand Dam Hydropower Project, further strengthening bilateral cooperation in infrastructure and energy development.
The agreement was inked at the Ministry of Economic Affairs between Mr. Muhammad Humair Karim, Secretary Economic Affairs Division, and the Kuwait Fund for Arab Economic Development (KFAED). Mr. Fahad Hesham S. Aldousari, Deputy Head of Mission at the Embassy of Kuwait, and senior officials from WAPDA and the Economic Affairs Division attended the ceremony.
This is the second tranche of Kuwait’s total pledged financing of Kuwaiti Dinar 30 million (US$100 million) for the Mohmand Dam, being released in four equal installments. The first agreement was signed in June 2024 following Pakistan’s request during the 5th Pakistan–Kuwait Joint Ministerial Commission earlier that year.
The Mohmand Dam, one of Pakistan’s key hydropower and water storage projects, is expected to enhance national water reserves, generate clean electricity, and provide drinking water to Peshawar, in addition to improving flood management.
Speaking at the signing, Secretary Humair Karim thanked the Government of Kuwait and the Kuwait Fund for their continued support of Pakistan’s development agenda, calling the concessional financing a reflection of the “brotherly relations and long-standing partnership” between the two nations. He also urged for early finalization of the remaining two loan tranches and invited Kuwait to explore additional financing opportunities in Pakistan’s priority sectors.
Mr. Fahad Hesham Aldousari reaffirmed Kuwait’s commitment to deepening economic cooperation and said that the Kuwait Fund would continue supporting Pakistan’s development initiatives in energy, water, and social infrastructure.
Officials said the latest financing will accelerate ongoing construction on the strategically important dam, which holds major significance for Pakistan’s energy security and water management.
