Dubai, UAE — The Saudi Fund for Development (SFD) has signed a US$240 million loan agreement to support Pakistan’s Mohmand Multipurpose Dam Project, an 800MW hydropower complex that will 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 Sultan Abdulrahman Al-Marshad and the Federal Secretary for Ministry of Economic Affairs, Pakistan, Dr. Kazim Niaz.
The project, which is co-financed by the Saudi Fund for Development, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development is expected to have a significant impact on Pakistan’s energy and water sectors. By using renewable energy sources, the project will generate 800 MW of electricity production capacity, contributing to Pakistan’s energy security.
In addition, the storage of 1.6 million m3 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.
SFD said in a statement that the project will enhance water and food security and improve the standard of living for people living in the Khyber Pakhtunkhwa province, where almost 80 percent of the population resides in rural areas, boosting the region’s socioeconomic development by creating employment opportunities and reducing poverty levels.
It added that the project aligns with UN’s sustainable development goals (SDGs) such as SDG-2 (Food Security), SDG-6 (Clean Water) and SDG-7 (Clean Energy) besides embodying SDG-17 (Partnerships for the Goals).
To date, SFD has financed around 41 development projects and programs in Pakistan, amounting to approximately $1.4 billion, In addition, SFD has financed between 2019 and 2023, oil derivatives worth more than $5.4 billion, to support Pakistan’s economy.