Saudi Arabia announces to provide $240mn to Pakistan

ISLAMABAD: Saudi Fund for Development (SFD) has announced provision of $240 million to advance the multipurpose Mohmand Dam project in Pakistan, ARY News reported on Saturday.

The agreement was signed by the Chief Executive Officer of SFD Sultan Abdulrahman Al-Marshad and the Federal Secretary Ministry of Economic Affairs Dr Kazim Niaz, whereas Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki was also presented on the occasion

According to the press statement, the dam would significantly contribute in the country’s energy security, increase sustainable water supply for agriculture and human consumption as well as improve resilience against floods.

This loan represents a strong partnership between Saudi Arabia and Pakistan in promoting sustainable development and achieving Sustainable Developments Goals.

The Mohmand Dam project will enhance water and food security besides improving the standard of living of the people of Khyber Pakhtunkhwa Province as about 80 percent of the population resides in rural areas.

The project, which will also help in boosting socioeconomic development by creating employment opportunities and reducing poverty levels in these areas, is aligned with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals).

By using renewable energy sources, the project will generate about 800 MW of electricity, contributing to Pakistan’s energy security. In addition, the storage of 1.6 million acre-feet of water will support sustainable agricultural practices, enable irrigation of 6,773 hectares of new land, and increase the total cropping area from 1,517 hectares to 9,227 hectares in the province.

During the agreement signing ceremony, the CEO of SFD emphasized the strong developmental ties between Saudi Arabia and Pakistan and highlighted the significance of joint cooperation between development funds, as evidenced by this project

He further emphasized that this initiative is an extension of SFD’s continued support for development projects and programs in Pakistan since its inception.

To date, the SFD has financed around 41 development projects and programs in Pakistan, amounting to approximately $1.4 billion, In addition, SFD has financed between 2019 and 2023, oil derivatives worth more than USD 5.4 billion, to support Pakistan’s economy, this comes as a continuation of the support provided by the Government of Saudi Arabia to the brotherly country Pakistan to build a sustainable economy.