According to a statement issued by the Ministry of Economic Affairs, Saudi Arabia signed a $240 million loan agreement with Pakistan on Friday to support the Mohmand Multipurpose Dam Project.
Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development (SFD), and Kazim Niaz, Federal Secretary for the Ministry of Economic Affairs, signed the agreement. Nawaf bin Said Al-Malki, Saudi Ambassador to Pakistan, was also present.
According to the statement, this loan represents a strong partnership between Saudi Arabia and Pakistan in promoting and achieving the Sustainable Development Goals (SDGs).
The Mohmand Multipurpose Dam Project is a large hydropower complex that will help Pakistan secure its energy supply, increase sustainable water supply for agriculture and human consumption, and improve flood resilience.
According to the statement, the project is expected to improve water and food security, as well as the standard of living for people in Khyber Pakhtunkhwa, where nearly 80% of the population lives in rural areas, while also boosting the region’s socioeconomic development by creating job opportunities and lowering poverty levels.
The project will generate 800 MW of electricity production capacity using renewable energy sources, contributing to Pakistan’s energy security. Furthermore, the storage of 1.6 million cubic meters of water will support sustainable agricultural practices, allow irrigation of 6,773 hectares of new land, and increase total cropping area in the province from 1,517 hectares to 9,227 hectares, easing agricultural activities.
The project, which is co-financed by the SFD, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, aligns with SDGs 2 (Food Security), 6 (Clean Water), and 7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals).
The CEO of SFD stated during the agreement signing ceremony that this initiative is an extension of the fund’s ongoing support for development projects and programs in Pakistan since its inception. He also emphasized the importance of collaboration among development funds, as demonstrated by this project.
Dr. Niaz, for his part, expressed his heartfelt appreciation and gratitude to the Kingdom of Saudi Arabia for its unwavering support for Pakistan’s development sector through the SFD.