Pakistan gets a loan for an energy project worth $240 million.
The Saudi Fund for Development (SFD) signed a $240 million loan deal with Pakistan’s Mohmand Multipurpose Dam Project on Friday. This will help Pakistan make a change in its energy system.
The project, which is being funded by the SFD, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, is meant to improve Pakistan’s energy security, increase the amount of water that can be used for farming and drinking, and make the country more resistant to flooding.
The deal was signed by Mr. Sultan Abdulrahman Al-Marshad, who is the CEO of SFD, and Dr. Kazim Niaz, who is the Federal Secretary for Ministry of Economic Affairs.
According to a statement from the Ministry of Economic Affairs, “the loan is meant to help Pakistan achieve the Sustainable Development Goals (SDGs) and promote sustainable development.”
The statement went on to say that the dam would help the people of Khyber Pakhtunkhwa a lot. (KP).
“The Mohmand Multipurpose Dam Project will increase water and food security and improve the standard of living for people in Khyber Pakhtunkhwa province, where almost 80% of the population lives in rural areas,” the statement said, adding that it would also help the region’s socioeconomic development by creating jobs and reducing poverty.
“By using renewable energy sources,” the ministry said, “the project will increase Pakistan’s energy security by producing 800 MW of electricity.”
“Also, storing 1.6 million m3 of water will help farmers use sustainable methods, allow irrigation of 6,773 hectares of new land, and increase the total cropping area in the province from 1,517 hectares to 9,227 hectares, which will make farming easier.”
During the signing event, the SFD CEO talked about how strong the development ties between Saudi Arabia and Pakistan are and how important it is for development funds to work together.