Islamabad: In a significant move to bolster Pakistan’s hydropower capabilities, a Second Loan Agreement of Kuwaiti Dinar 7.5 million (approximately US$ 25 million) was signed today between the Government of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED) during a ceremony at the Ministry of Economic Affairs.

The agreement was signed by Mr. Muhammad Humair Karim, Secretary of the Ministry of Economic Affairs, representing Pakistan. The event was attended by Mr. Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission from the Embassy of Kuwait, as well as senior officials from the Ministry of Economic Affairs and the Water and Power Development Authority (WAPDA).

Mr. Karim expressed gratitude towards Kuwait and KFAED for their support in Pakistan’s development projects, citing the concessional financing as a testament to the strong partnership between the two nations. He acknowledged the Kuwait Fund’s contributions in sectors such as energy, water, and social development, all vital to Pakistan’s socio-economic progress.

The agreement follows a request made during the Pakistan-Kuwait Joint Ministerial Commission session in May 2024, where Pakistan sought financing of Kuwaiti Dinar 30 million (US$ 100 million) for the Mohmand Dam project. This second loan marks another step in the phased financing arrangement agreed upon, with the first loan signed in June 2024.

Mr. Karim highlighted the project’s progress and the importance of the second loan in accelerating construction. The Mohmand Dam aims to increase water storage, generate clean energy, provide drinking water to Peshawar, and enhance flood control measures in Pakistan.

Mr. Aldousari, representing the Kuwaiti Government, reiterated Kuwait’s commitment to strengthening bilateral economic cooperation and assured ongoing support for Pakistan’s development efforts through KFAED.