Saudi Fund Pledges $240M for Pakistan’s Mohmand Dam
The Saudi Fund for Development (SFD) has signed a US$240 million loan agreement to support Pakistan’s Mohmand Multipurpose Dam Project.
This is a large hydropower complex that will enhance Pakistan’s energy security, provide more water for agriculture and people, and make the country more resilient to floods.
The Saudi Ambassador to Pakistan, Mr. Nawaf bin Said Al-Malki was also present during the signing ceremony.
The CEO of SFD, Mr. Sultan Abdulrahman Al-Marshad, and the Federal Secretary for the Ministry of Economic Affairs in Pakistan, Dr. Kazim Niaz signed agreement.
This loan demonstrates that Saudi Arabia and Pakistan are collaborating to promote sustainable development and achieve the SDGs.
The Mohmand Multipurpose Dam Project will improve people’s access to water and food, and raise their standard of living in the Khyber Pakhtunkhwa province, where nearly 80% of the population resides in rural areas.
This will aid the region’s socioeconomic development by generating employment opportunities and alleviating poverty.
The project aligns with SDG-2, which pertains to food security, SDG-6, which pertains to clean water, and SDG-7, which pertains to clean energy.
It also corresponds to SDG-17, which focuses on partnerships for the goals.
The Saudi Fund for Development, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development are all contributing to funding this project.
It is anticipated to have a substantial impact on Pakistan’s energy and water sectors. By utilizing renewable energy sources, the project will increase Pakistan’s energy security by adding 800 MW of electricity production capacity.
Additionally, the storage of 1.6 million m3 of water will facilitate the use of sustainable farming techniques, enabling the irrigation of 6,773 hectares of new land and increasing the total cropping area in the province from 1,517 hectares to 9,227 hectares, thereby facilitating agriculture.
During the signing ceremony, the CEO of SFD spoke about the close developmental ties between the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan.
He emphasized the importance of development funds working together, as demonstrated by this project.
He also mentioned that this project represents a continuation of SFD’s support for development projects and programs in Pakistan since the organization’s inception.
To date, SFD has invested about $1.4 billion in 41 development projects and programs in Pakistan. Between 2019 and 2023, SFD will also invest more than $5.4 billion in oil derivatives to assist Pakistan’s economy. This is part of the aid that the Saudi Arabian government has been providing to Pakistan to establish a robust economy.
Dr. Kazim Niaz, in turn, expressed his sincere gratitude and appreciation to the Kingdom of Saudi Arabia for its continued support of Pakistan’s development sectors through the SFD.
He acknowledged that the Kingdom had made a significant contribution to the project’s funding and emphasized the importance of Pakistan and its people developing sustainably.
Using renewable energy would provide a sustainable source of energy and water, which would enhance food and water security.
Dr. Niaz praised the Kingdom of Saudi Arabia’s efforts to promote development through the SFD since 1976, which have led to remarkable social growth and long-term economic prosperity.
Since 1975, the SFD has also provided funding for 76 energy-related development projects and programs in African and Asian countries.
This includes 33 projects and programs in African countries, 42 in Asian countries, and one in Latin America.
The SFD has also been involved in developing and supporting 35 projects in the renewable energy sector in 23 developing countries worldwide.
