Islamabad, 7 April 2023 (GNP): A loan agreement worth US$240 million has been signed by the Saudi Fund for Development (SFD) to support the Mohmand Multipurpose Dam Project in Pakistan, a significant hydropower complex that will increase Pakistan’s sustainable water supply for agriculture and human consumption and strengthen flood resilience.
The agreement was signed in the presence of the Islamic Republic of Pakistan’s Ambassador to the Custodian of the Two Holy Mosques, Nawaf bin Said Al-Malki, by SFD CEO Sultan Abdulrahman Al-Marshad and Federal Secretary for Ministry of Economic Affairs, Dr. Kazim Niaz. Through this financing, Saudi Arabia and Pakistan are demonstrating their commitment to advancing sustainable development and reaching the SDGs.
In the Khyber Pakhtunkhwa province, where almost 80% of the population lives in rural areas, the Mohmand Multipurpose Dam Project will improve food, water security and the quality of life for locals while also boosting the socioeconomic development of the area by generating employment opportunities and lowering poverty rates. The initiative exemplifies SDG-17 and is in line with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) (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 funds to the project, which is anticipated to have a substantial influence on Pakistan’s water and energy sectors. The project will produce 800 Megawatts of power via the use of renewable energy sources, enhancing Pakistan’s energy security.
The province’s total cropping area will rise from 1,517 hectares to 9,227 hectares as a result of the 1.6 million m3 of water that will be stored, supporting sustainable agricultural practises, enabling irrigation of 6,773 hectares of new land, and facilitating agricultural operations.
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The CEO of SFD highlighted the close developmental connections between the Islamic Republic of Pakistan and the Kingdom of Saudi Arabia during the agreement signing event. As demonstrated by this initiative, the CEO further emphasised the need of collaboration across development funds. He said that this effort is a continuation of SFD’s ongoing support for programmes and projects that promote development in Pakistan since the organization’s founding.
In addition to funding oil derivatives worth more than USD 5.4 billion between 2019 and 2023 to support Pakistan’s economy, SFD has funded around 41 development projects and programmes in Pakistan to date, totaling roughly $1.4 billion. This is a continuation of the support the Government of Saudi Arabia has given to the friendly nation of Pakistan to develop a sustainable economy.
Dr. Kazim Niaz, on his part, expressed his gratitude and profound appreciation to the Kingdom of Saudi Arabia for its unwavering support of Pakistan’s development sectors through the Saudi Fund. He acknowledged the Kingdom’s sizable financial contribution to the crucial project and stressed the project’s significance for Pakistan’s and its citizens’ beneficial development.
Using renewable energy would provide sustainable energy and water sources, improving the security of both food and water. Dr. Niaz lauded the Kingdom of Saudi Arabia’s development initiatives, which have been carried out through SFD since 1976 and have produced notable social growth and lasting economic success.
Since 1975, the SFD has furthermore financed 76 energy-related development projects and programmes in African and Asian nations, including 33 projects and programmes in Africa, 42 projects and programmes in Asia, and one project in South America. Moreover, the SFD has actively supported and developed 35 projects in 23 poor nations throughout the globe in the field of renewable energy.