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Saudi Fund for Development signs $240m loan agreement with Pakistan for a sustainable energy project

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The Saudi Fund for Development (SFD) has signed a loan agreement worth $240 million with Pakistan to support the Mohmand Multipurpose Dam Project, aimed at promoting sustainable development and achieving the Sustainable Development Goals (SDGs). The project is co-financed by the SFD, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development.

The project is expected to enhance water and food security and improve the standard of living for people living in the Khyber Pakhtunkhwa province, where almost 80% of the population resides in rural areas. The dam will also boost the region’s socioeconomic development by creating employment opportunities and reducing poverty levels.

With the use of renewable energy sources, the project is expected to generate 800 MW of electricity production capacity, contributing to Pakistan’s energy security. The storage of 1.6 million cubic meters 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.

During the agreement-signing ceremony, the SFD CEO emphasized the strong developmental ties between Saudi Arabia and Pakistan and highlighted the significance of joint cooperation between development funds.

The loan agreement is a significant step towards achieving the SDGs and promoting sustainable development in Pakistan. The project will not only enhance the country’s energy security but also support sustainable agricultural practices, enabling the country to produce more food and reduce poverty levels. The project is expected to have a positive impact on the standard of living for people living in rural areas, providing them with employment opportunities and improving their socioeconomic conditions.

The Mohmand Multipurpose Dam Project is an excellent example of how development funds can collaborate to support sustainable development and promote energy transition in developing countries. The project is expected to serve as a model for future projects aimed at achieving the SDGs in Pakistan and other developing countries.

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