Pakistan enters a contract with Saudi Arabia to provide a loan of USD 240 million to build a dam.

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Islamabad: According to a statement released by the Pakistani Ministry of Economic Affairs, Saudi Arabia inked a credit agreement with Pakistan on Friday for USD 240 million to fund the Mohmand Multipurpose Dam Project.

Kazim Niaz, Federal Secretary for the Ministry of Economic Affairs, and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development (SFD), signed the agreement. Nawaf bin Said Al-Malki, the Saudi ambassador to Pakistan, was also present.

According to the statement, this loan shows Saudi Arabia and Pakistan’s commitment to working together to advance sustainable development and meet the Sustainable Development Goals (SDGs), according to Dawn.

Today in Islamabad, SFD approved Pakistan a loan of USD 240 million for the construction of the Mohmand Dam.(Image from Twitter: Government of Pakistan’s Economic Affairs Division)

The Mohmand Multipurpose Dam Project is a significant hydropower complex that will enhance flood resilience, provide sustainable water supply for agriculture, and contribute to Pakistan’s energy security. On the Swat River, close to Peshawar in Pakistan, there is a multipurpose, concrete-faced, rock-filled dam called Mohmand Dam.

According to the statement, the project will improve food and water security and the quality of life for people in Khyber Pakhtunkhwa, where nearly 80% of the population lives in rural areas. It will also advance the socioeconomic development of the area by generating employment opportunities and lowering poverty rates, according to Dawn.

Additionally, the project will produce 800 MW of electricity through the use of renewable energy sources, enhancing Pakistan’s energy security. Additionally, the province’s cropping area would rise from 1,517 hectares to 9,227 hectares thanks to the storage of 1.6 million cubic metres of water, enabling irrigation of 6,773 hectares of new land and promoting sustainable agricultural practises.

The initiative, which is co-financed by the SFD, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, is in line with SDGs 2 (Food Security), 6 (Clean Water), 7, and 17 (Sustainable Energy). (Partnerships for the Goals).

The CEO of SFD stated during the signing of the agreement that this initiative is an expansion of the fund’s ongoing support for development projects and activities in Pakistan since its inception. He also emphasised the value of collaboration amongst development funds, as demonstrated by this project, according to Dawn.

Niaz, for his part, expressed his gratitude and genuine appreciation to the Kingdom of Saudi Arabia for its unwavering support of Pakistan’s growth industry through the SFD.

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