By Staff Reporter
ISLAMABAD: The Saudi Fund for Development (SFD) signed a $240 million loan agreement with Pakistan on Friday to support the multipurpose Mohmand Dam Project.
The hydropower complex will not only improve Pakistan’s energy security but also increase sustainable water supply for agriculture and human consumption while enhancing resilience to floods.
Sultan Abdulrahman Al-Marshad, CEO of SFD, and Kazim Niaz, Secretary for Economic Affairs, signed the agreement. Saudi Ambassador Nawaf bin Said Al-Malki was also present at the loan signing ceremony.
The project is co-financed by the Saudi Fund for Development, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development. It aims to generate 800 MW of electricity production capacity by using renewable energy sources.
Moreover, the project is expected to store 1.6 million m3 of water, enabling irrigation of 6,773 hectares of new land and increasing the total cropping area from 1,517 hectares to 9,227 hectares in the Khyber Pakhtunkhwa province, where almost 80 percent of the population resides in rural areas.
The project will also create employment opportunities and reduce poverty levels, thereby boosting the region’s socioeconomic development.
During the agreement signing ceremony, the CEO of SFD emphasized the strong developmental ties between Saudi Arabia and Pakistan, highlighting the significance of joint cooperation between development funds.
He stated that the initiative is an extension of SFD’s continued support for development projects and programs in Pakistan since its inception.
Secretary Niaz expressed his sincere appreciation and gratitude to the Kingdom of Saudi Arabia for its unwavering support towards the development sectors in Pakistan through the SFD.
He recognized the significant contribution made by the Kingdom towards financing the vital project and emphasized its importance in bringing about positive developmental impacts on Pakistan and its people.
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