On Friday, Saudi Arabia and Pakistan signed an agreement for the financing of the Mohmand Hydropower Dam Project, valued at over $240 million. The project, located on the Swat River north of Peshawar, will be funded through a “soft development loan” provided by the Saudi Fund for Development (SFD).
The project aims to improve energy and water supply for agriculture and daily consumption, protect against flood risks, and produce clean energy. The agreement was signed by SFD CEO Sultan Abdulrahman al-Marshad and Dr. Kazim Niaz, the Undersecretary of the Ministry of Economic Affairs, in Islamabad.
This project is part of the support provided by the Saudi government through the SFD to finance vital and economic projects for Pakistan’s growth and development. The agreement follows Pakistan’s announcement that Saudi Arabia would provide a $2 billion loan to help the country avoid default and move closer to an International Monetary Fund bailout.
The SFD has funded over 40 development projects and programs worth $1.4 billion in addition to oil derivatives with a value exceeding $5.4 billion in the past four years. The organization is currently financing 76 projects and programs in African and Asian countries.
