Saudi Arabia has signed a $240 million loan agreement with Pakistan to support the Mohmand Dam project in the northwestern Khyber Pakhtunkhwa province. The agreement was signed in Islamabad by officials from the Ministry of Economic Affairs and the Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki. The loan will provide significant support to Pakistan’s energy security while also improving food and water security and boosting socioeconomic development in the province.
The Mohmand Dam project is located in Khyber Pakhtunkhwa province and suffered damage during a devastating flood last year that inundated a third of the country. The flood caused a colossal loss of roughly $30 billion to the country’s economy, which has already been struggling due to the global coronavirus pandemic. The agreement to support the dam’s reconstruction and rehabilitation is a significant step in Pakistan’s economic recovery.
Prime Minister Shehbaz Sharif visited the dam site in August last year and stated that the dam will generate 800 megawatts of electricity while also providing water for irrigation and helping to save the area from flooding. The loan from the Saudi Fund for Development (SFD) will go towards rebuilding the dam and increasing its capacity to generate clean and renewable energy, improving the lives of the people living in the surrounding areas.
Pakistan has been working to increase its energy capacity and reduce its reliance on fossil fuels. The country has significant renewable energy potential, particularly in solar and wind energy, and has set an ambitious target of generating 30% of its electricity from renewable sources by 2030. The Mohmand Dam project will be a significant step towards achieving this goal, as well as improving food and water security and boosting socioeconomic development in the region.
The loan from the SFD is a testament to the strong relationship between Pakistan and Saudi Arabia, and the commitment of the Saudi government to supporting development projects in Pakistan. The two countries have a long history of cooperation, and the loan for the Mohmand Dam project is just one example of the ongoing partnership between them.
The loan agreement between Saudi Arabia and Pakistan for the Mohmand Dam project is a significant step towards improving energy, food, and water security in Pakistan while also boosting socioeconomic development in the province. The project will also contribute to Pakistan’s ambitious renewable energy targets and help the country reduce its reliance on fossil fuels. The loan is a testament to the strong relationship between the two countries and their ongoing commitment to cooperation and development.