To finance the Mohmand Multipurpose Dam Project, the government has inked a $240 million credit arrangement with the Saudi Fund for Development (SFD).
The Mohmand Multipurpose Dam Project, according to a statement made by SFD, the Kingdom’s organisation that provides aid for development to developing countries, will boost water and food security, as well as the level of living for residents in the Khyber Pakhtunkhwa province.
The project, which is funded partially by the SFD, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, is in line with some of the United Nations Sustainable Development Goals. (SDG). Food security, clean water, and clean energy are examples of these.
According to the statement, the project will have a substantial influence on Pakistan’s energy and water sectors.
“By utilising renewable energy sources, the project will produce 800 MW of electricity, contributing to Pakistan’s energy security,” stated SFD.
Furthermore, the storage of 1.6 million m3 of water will support sustainable agricultural practices, allow irrigation of 6,773 hectares of new land, and raise the overall cropping area in the province from 1,517 hectares to 9,227 hectares, easing agricultural activities.
The agreement was signed by SFD CEO Sultan Abdulrahman Al-Marshad and Dr. Kazim Niaz, Pakistan’s Federal Secretary for the Ministry of Economic Affairs.
During the deal signing ceremony, the CEO of SFD emphasized KSA and Pakistan’s strong developing links.
Deal signed with SFD to finance oil derivatives worth $1bn
He emphasized the need for collaboration among development funds, as demonstrated by this project. He added that this initiative is a development of SFD’s long-standing support for development projects and programmes in Pakistan.
According to the statement, SFD has financed roughly 41 development projects and programmes in Pakistan totaling over $1.4 billion to date. Additionally, SFD has financed oil derivatives totaling more than $5.4 billion between 2019 and 2023 to assist Pakistan’s economy.
SFD acknowledged the rollover of $3 billion deposits with Pakistan for another year in September of last year. The amount was deposited by the SFD for one year in December 2021 as part of an agreement between the SFD and the State Bank of Pakistan to make up Pakistan’s decreasing foreign exchange reserves.
