ISLAMABAD – The Saudi Fund for Development (SFD) has signed a $240 million loan agreement to support Pakistan’s Mohmand Multipurpose Dam Project, a major hydropower complex that will contribute to energy security, increase sustainable water supply and improve resilience to floods in the South Asian country.
The agreement was signed by the SFD CEO Sultan Abdulrahman Al-Marshad, and the Federal Secretary for Ministry of Economic Affairs, Pakistan, Dr. Kazim Niaz, with the presence of Saudi Ambassador Nawaf bin Said Al-Malki.
This loan represents a strong partnership between Saudi Arabia and Pakistan in promoting sustainable development and achieving the SDGs.
The Mohmand Multipurpose Dam Project will enhance water and food security, and improve the standard of living for people living in the Khyber Pakhtunkhwa province, where almost 80% of the population resides in rural areas, boosting the region’s socioeconomic development by creating employment opportunities and reducing poverty levels.
The project, which is co-financed bythe Saudi Fund for Development, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, is expected to have a significant impact on Pakistan’s energy and water sectors.
By using renewable energy sources, the project will generate 800 MW of electricity production capacity, contributing to Pakistan’s energy security.
In addition, the storage of 1.6 million m3 of water will support sustainable agricultural practices, enable irrigation of 6,773 hectares of new land, and increase the total cropping area from 1,517 hectares to 9,227 hectares in the province, facilitating agricultural activities.
During the agreement signing ceremony, the CEO highlighted the significance of joint cooperation between development funds, as evidenced by this project.
He further emphasized that this initiative is an extension of SFD’s continued support for development projects and programs in Pakistan since its inception.
PM Shehbaz, AJK premier Sardar Tanvir have a brief argument at Mangla Dam new units opening ceremony
