ISLAMABAD: The Saudi Fund for Development (SFD) signed a $240 million loan agreement to support Pakistan’s Mohmand Multipurpose Dam Project, a major 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, in the presence of the Ambassador of the Kingdom of Saudi Arabia to Pakistan, Nawaf bin Said Al-Malki. This loan represents a strong partnership between Saudi Arabia and Pakistan in promoting sustainable development and achieving the SDGs.

The Mohmand Multipurpose Dam Project will enhance water and food security, and improve the standard of living for people of 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.

The project aligns with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals).

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 electricity, 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.

Copyright Business Recorder, 2023