ISLAMABAD: The government of Pakistan and Saudi Fund for Development (SFD) signed two loan agreements amounting 107 million dollars for hydropower projects.

A delegation from the SFD, led by Sultan Bin Abdul Rehman Al Marshad, chief executive officer (CEO) SFD, during its visit to Pakistan (22-24 March, 2024), called on Ahad Khan Cheema, Minister for Economic Affairs on 22nd March 2024.

Minister for Economic Affairs welcomed the delegation and appreciated the efforts of SFD for financing in the fields of health, energy, infrastructure, and education as well as the recent floods.

The CEO SFD thanked the minister and the Government of Pakistan for the warm welcome and hospitality as well as the conferment of award.

Ahad Khan Cheema also witnessed signing of the loan agreements for Shounter Hydropower Project (48MW) – $66 million and Jagran IV Hydropower Project (22MW) – $41 million.

Dr Kazim Niaz, secretary Economic Affairs Division, and Sultan Bin Abdul Rehman Al Marshad signed the financing agreements.

These endeavours aim at harnessing the indigenously available hydropower potential and generating 70MW hydropower, which will be transmitted to the national grid.

Moreover, it will help in eradicating the menace of deforestation by providing electricity as an alternative to the energy needs of the local communities, who hitherto are entirely dependent on forest wood; and create economic opportunities for socioeconomic uplift of the people of AJK.

The Minister for Economic Affairs appreciated the role and support of SFD to Pakistan at a very challenging time and assured the delegation for further strengthening ties in the future. Sultan Bin Abdul Rehman Al Marshad assured Pakistan of SFD’s continued support.

Copyright Business Recorder, 2024