On Friday, the Saudi Fund for Development (SFD) signed a loan agreement worth $240 million to support Pakistan’s energy transition through the Mohmand Multipurpose Dam Project.
The project, which is co-financed by the SFD, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, is expected to contribute to Pakistan’s energy security, increase sustainable water supply for agriculture and human consumption, and improve resilience to floods.
The agreement was signed by the SFD CEO, Mr Sultan Abdulrahman Al-Marshad, and the Federal Secretary for the Ministry of Economic Affairs, Dr Kazim Niaz. According to a statement from the Ministry of Economic Affairs, the loan aims to promote sustainable development in Pakistan and achieve the Sustainable Development Goals (SDGs).
The statement further highlighted that the Mohmand Multipurpose Dam Project will be of great assistance to the people of Khyber Pakhtunkhwa (KP), where almost 80 per cent of the population resides in rural areas. The project will enhance water and food security, improve the standard of living for people, and boost the region’s socioeconomic development by creating employment opportunities and reducing poverty levels.
The project will also generate 800 MW of electricity production capacity by using renewable energy sources, contributing to Pakistan’s energy security. Additionally, the storage of 1.6 million meter cube 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 SFD CEO emphasised the strong developmental ties between Saudi Arabia and Pakistan and highlighted the significance of joint cooperation between development funds.