Pakistan has officially finalized Pakistan Mohmand Dam Loan Agreement with Kuwait. This deal secures about Rs $25 million (around 7 billion) in concessional funding for the Mohmand Dam Hydropower Project, marking the second installment of a larger $100 million commitment from Kuwait to back the initiative. Senior officials from the Ministry of Economic Affairs and WAPDA were present at the signing ceremony. This funding is essential for bolstering Pakistan’s energy and water infrastructure.
Economic Affairs Secretary Muhammad Humair Karim pointed out that this financial support underscores the long-standing partnership between Pakistan and Kuwait. He mentioned that it will help accelerate the construction of the Mohmand Dam. The project is set to produce clean hydropower, enhance water storage, provide drinking water to Peshawar, and aid in flood control in the area.
Fahad Hesham H. A. S. Aldousari, the Deputy Head of Mission of Kuwait, reiterated Kuwait’s commitment to supporting Pakistan’s development goals, particularly in energy and water security. Karim also encouraged the swift signing of the next tranche and invited Kuwait to consider financing additional development projects in Pakistan.
The Pakistan Mohmand Dam loan agreement with Kuwait highlights Pakistan’s efforts to secure diverse funding for crucial infrastructure projects. The dam is seen as vital for sustainable power generation and improving resilience against climate-related flooding. The new funds are anticipated to speed up construction and ensure the long-term success of this strategic initiative.
Boosting Pakistan’s Energy and Water Sector
This Pakistan Mohmand Dam Loan Agreement with Kuwait marks another significant step in Pakistan’s ongoing mission to enhance its energy sector and water management systems through international collaboration. By tapping into concessional loans from partners like Kuwait, Pakistan aims to strengthen its infrastructure, improve access to clean energy, and meet the rising demands for water and electricity in the region.
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