April 07, 2023 (MLN): The Saudi Fund for Development (SFD) has signed a $240 million loan agreement to support Mohmand Multipurpose Dam Project.
The agreement will have a positive impact on the Khyber Pakhtunkhwa province in Pakistan by improving water and food security, as well as the standard of living of its people, SFD said in a statement.
The project, which is being co-financed by SFD, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, aligns with several of the United Nations Sustainable Development Goals (SDG), including those related to food security, clean water, and clean energy.
The project is expected to have a significant impact on Pakistan's energy and water sectors.
According to SFD, the project will use renewable energy sources to generate 800 MW of electricity, contributing to Pakistan's energy security.
The storage of 1.6 million m3 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, facilitating agricultural activities.
The agreement for the project was signed by the CEO of SFD, Sultan Abdulrahman Al-Marshad, and the Federal Secretary for the Ministry of Economic Affairs in Pakistan, Dr. Kazim Niaz.
As of now, SFD has provided financing for approximately 41 development projects and programs in Pakistan, totaling around $1.4 billion. Furthermore, the SFD has supported Pakistan's economy by financing oil derivatives worth over $5.4bn from 2019 to 2023.
In September of last year, the SFD confirmed the extension of their $3 billion deposits with Pakistan for another year.
The SFD had initially deposited this amount for one year in December 2021, under an agreement with the State Bank of Pakistan (SBP), in order to assist with Pakistan's diminishing foreign exchange reserves.
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Posted on: 2023-04-07T15:19:06+05:00
