ISLAMABAD: Kuwait has provided a loan of $25 million for the Mohmand Dam Hydropower project, the Economic Affairs Division announced on Friday.
A signing ceremony was held at the Ministry of Economic Affairs to formalize the Second Loan Agreement amounting to Kuwaiti Dinar 7.5 million (approximately US$25 million) between the Government of the Islamic Republic of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED) for the project.
The agreement was signed by Muhammad Humair Karim, Secretary Economic Affairs, on behalf of the Government of Pakistan.
The ceremony was attended by Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission, Embassy of the State of Kuwait, and senior officials from the Ministry of Economic Affairs and Wapda.
Speaking on the occasion, Humair thanked the Government of the State of Kuwait and KFAED for their continued support to Pakistan’s development agenda. He said the concessional financing reflected the brotherly relations and an enduring partnership between Pakistan and Kuwait
He appreciated the Kuwait Fund’s financial assistance in energy, water, and social sector projects, which are contributing significantly to Pakistan’s socio-economic development.
It was recalled that during the 5th Session of the Pakistan-Kuwait Joint Ministerial Commission held in May 2024, Pakistan had requested the Kuwait Fund for early signing of financing agreement for a total of Kuwaiti Dinar 30 million (US$100 million) for the Mohmand Dam Hydropower Project, to be released in four equal tranches.
Following the signing of the first loan agreement in June 2024, Friday’s signing marks the second phase of this commitment.