Islamabad, In a significant move to enhance Pakistan’s energy sector, the Saudi Fund for Development (SFD) and the Pakistani government have inked loan agreements for two hydropower projects. This initiative underscores the strengthening relationship between Saudi Arabia and Pakistan, focusing on sustainable energy development.

According to Press Information Department, during the SFD delegation’s visit to Pakistan from March 22 to 24, 2024, led by CEO Mr. Sultan Bin Abdul Rehman Al Marshad, the parties finalized funding for the Shounter Hydropower Project and the Jagran IV Hydropower Project. These agreements were signed in the presence of Pakistan’s Minister for Economic Affairs, Mr. Ahad Khan Cheema, and Dr. Kazim Niaz, Secretary of the Economic Affairs Division. The Shounter project, with a capacity of 48 MW, will receive US$ 66 million, while the Jagran IV project, at 22 MW, secures US$ 41 million.

These projects are pivotal in tapping into Pakistan’s indigenous hydropower resources, aiming to generate a combined 70 MW of power to be integrated into the national grid. Beyond energy production, these initiatives are designed to mitigate deforestation and offer sustainable energy alternatives to local communities in Azad Jammu and Kashmir (AJK), traditionally reliant on wood. They are also expected to foster economic development and social uplift in the region.

Mr. Cheema lauded the SFD’s pivotal role and timely support, acknowledging its contributions across various sectors, including health, energy, infrastructure, and education, especially in the aftermath of recent floods in Pakistan. Both sides expressed their commitment to further solidifying their partnership, with Mr. Al Marshad reaffirming the SFD’s ongoing support for Pakistan’s development.