Pakistan inks $107 million deals with Saudi Fund for hydropower projects

Pakistan and the Saudi Fund for Development (SFD) have recently finalised significant agreements aimed at bolstering the country’s energy infrastructure.

In a ceremonial signing event held on Friday, two pivotal loan agreements were formalised.

The first agreement, valued at $66 million, pertains to the Shounter Hydropower Project, boasting a capacity of 48 MW.

The second agreement, worth $41 million, is dedicated to the Jagran IV Hydropower Project, with a capacity of 22 MW.

The signing ceremony, attended by key figures from both parties, including Sultan Bin Abdul Rehman Al Marshad, Chief Executive Officer of SFD, and Ahad Khan Cheema, Minister for Economic Affairs, marks a significant milestone in Pakistan’s pursuit of sustainable energy solutions.

In a statement issued following the event, Minister Ahad Khan Cheema expressed gratitude towards the SFD delegation and commended their unwavering support in various sectors, including health, energy, infrastructure, and education, particularly amidst recent challenges such as flooding incidents.

These collaborative efforts are geared towards tapping into Pakistan’s abundant hydropower potential, with the aim of generating an additional 70 MW of electricity to be integrated into the national grid.

Beyond mere energy production, the projects also seek to address environmental concerns by offering an alternative to deforestation practices.

By providing electricity as a viable substitute for wood-based energy sources, local communities, predominantly reliant on forest resources, will benefit. This initiative is expected to catalyze economic growth and uplift the socio-economic landscape of Azad Jammu and Kashmir (AJK).

Minister Ahad Khan Cheema reiterated Pakistan’s appreciation for the pivotal role played by SFD during challenging times and pledged to further strengthen bilateral relations in the future.

In response, Sultan Bin Abdul Rehman Al Marshad reaffirmed SFD’s steadfast commitment to supporting Pakistan’s development endeavours.