ISLAMABAD – The Saudi Fund for Development (SFD) has signed a $240 millionloan agreement to support Pakistan’s Mohmand Multipurpose Dam Project, amajor hydropower complex that will contribute to energy security, increasesustainable water supply and improve resilience to floods in the SouthAsian country.
The agreement was signed by the SFD CEO Sultan Abdulrahman Al-Marshad, andthe Federal Secretary for Ministry of Economic Affairs, Pakistan, Dr. KazimNiaz, with the presence of Saudi Ambassador Nawaf bin Said Al-Malki.
This loan represents a strong partnership between Saudi Arabia and Pakistanin 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 KhyberPakhtunkhwa province, where almost 80% of the population resides in ruralareas, boosting the region’s socioeconomic development by creatingemployment 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 EconomicDevelopment, is expected to have a significant impact on Pakistan’s energyand water sectors.
By using renewable energy sources, the project will generate 800 MW ofelectricity production capacity, contributing to Pakistan’s energy security.
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In addition, the storage of 1.6 million m3 of water will supportsustainable agricultural practices, enable irrigation of 6,773 hectares ofnew land, and increase the total cropping area from 1,517 hectares to 9,227hectares in the province, facilitating agricultural activities.
During the agreement signing ceremony, the CEO highlighted the significanceof joint cooperation between development funds, as evidenced by thisproject.
He further emphasized that this initiative is an extension of SFD’scontinued support for development projects and programs in Pakistan sinceits inception.
