Pakistan and Kuwait signed the second loan program for the Mohmand Dam Hydropower Project. The agreement provides Pakistan with $25 million. Officials from the Ministry of Economic Affairs and WAPDA attended the signing. Fahad Hesham, Deputy Head of Mission at the Kuwaiti Embassy, represented Kuwait. The ceremony was held at the Ministry of Economic Affairs in Islamabad.
The funds will help accelerate construction and development of the dam. Secretary Muhammad Humair Karim said the project is progressing smoothly. The dam will increase water storage, generate clean energy, and provide drinking water to Peshawar. Additionally, it will support flood control in Pakistan. The secretary thanked Kuwait and KFAED for supporting Pakistan’s development goals.
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Earlier, Pakistan requested a total of $100 million from the Kuwait Fund. The funding will be released in four equal installments. The first loan agreement was signed in June 2024. Today’s signing marks the second phase of the financing program. Pakistan also aims to finalize the third loan agreement soon.
Humair Karim highlighted that the concessional loan strengthens bilateral ties and promotes sustainable partnerships. He emphasized Kuwait’s continued support in energy, water, and social sector projects. These projects are vital for Pakistan’s socio-economic growth. The loan reflects the strong brotherly relationship between Pakistan and Kuwait.
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Fahad Hesham reaffirmed Kuwait’s commitment to Pakistan’s development initiatives. He assured that KFAED will continue supporting key energy and infrastructure projects. Both countries aim to expand economic cooperation in the coming years. The Mohmand Dam project remains a top priority for Pakistan’s development agenda.