ISLAMABAD: The Ministry of Economic Affairs announced that Saudi Arabia had signed a loan agreement worth $240 million with Pakistan to support the Mohmand Multipurpose Dam Project on Friday.
The agreement was signed by Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development (SFD), and Kazim Niaz, Federal Secretary for the Ministry of Economic Affairs, with the presence of the Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki. The loan agreement reflects a strong partnership between the two countries in promoting sustainable development and achieving the Sustainable Development Goals (SDGs).
The Mohmand Multipurpose Dam Project is a significant hydropower complex that will contribute to Pakistan’s energy security, provide sustainable water supply for agriculture and human consumption, and enhance resilience to floods.
The project is expected to improve water and food security, raise the standard of living for people in Khyber Pakhtunkhwa, where almost 80% of the population lives in rural areas, and boost the region’s socioeconomic development by creating job opportunities and reducing poverty levels.
Moreover, the project will generate 800 MW of electricity production capacity by utilizing renewable energy sources, contributing to Pakistan’s energy security.
During the agreement signing ceremony, the CEO of SFD emphasized the significance of joint cooperation between development funds, highlighting that this initiative is an extension of the fund’s continuous support for development projects and programs in Pakistan. The CEO lauded the Saudi Arabia for supporting Pakistan in this need of the hour.
