The Saudi Fund for Development (SFD) has recently signed a loan agreement worth $240 million to support Pakistan’s Mohmand Multipurpose Dam Project, according to a statement issued Friday.
This project is a significant hydropower complex that will enhance Pakistan’s energy security, improve sustainable water supply for human consumption and agriculture, and increase resilience to floods.
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The agreement was signed by the CEO of SFD, Sultan Abdulrahman Al-Marshad, and the Federal Secretary for Ministry of Economic Affairs, Pakistan, Dr. Kazim Niaz, in the presence of the Ambassador of the Custodian of the Two Holy Mosques to the Islamic Republic of Pakistan, Nawaf bin Said Al-Malki.
The loan agreement highlights the strong partnership between Saudi Arabia and Pakistan in promoting sustainable development and achieving the SDGs. The project will help improve the standard of living for people living in the Khyber Pakhtunkhwa province, where 80% of the population resides in rural areas. The project is expected to create employment opportunities, reduce poverty levels, and boost the region’s socioeconomic development.
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The Mohmand Multipurpose Dam Project aligns with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals). The project is co-financed by the Saudi Fund for Development, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development.
It is expected to have a significant impact on Pakistan’s energy and water sectors, with the use of renewable energy sources generating 800 MW of electricity production capacity, contributing to Pakistan’s energy security. The project will also support sustainable agricultural practices, irrigation of new land, and facilitate agricultural activities.
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During the agreement signing ceremony, the CEO of SFD emphasized the strong development ties between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan, with SFD having financed around 41 development projects and programs in Pakistan, amounting to approximately $1.4 billion. In addition, SFD has financed oil derivatives worth more than USD 5.4 billion between 2019 and 2023, to support Pakistan’s economy.
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Dr. Kazim Niaz expressed his appreciation to the Kingdom of Saudi Arabia for its unwavering support towards the development sectors in Pakistan through SFD, recognizing the significant contribution made by the Kingdom towards financing the vital project and emphasizing its importance in bringing about positive developmental impacts on Pakistan and its people.
