Pakistan and the Kuwait Fund for Arab Economic Development (KFAED) have signed the second loan agreement for the Mohmand Dam Hydropower Project, under which Pakistan will receive $25 million (7.5 million Kuwaiti dinars).
According to a statement issued by the Ministry of Economic Affairs, the signing ceremony took place at the ministry’s office in Islamabad. The agreement was signed by Secretary of Economic Affairs Division Muhammad Humair Karim on behalf of Pakistan, while Fahad Hisham, Deputy Head of Mission at the Kuwaiti Embassy, and senior officials from the ministry and WAPDA were also present.
During the ceremony, Secretary Karim expressed gratitude to the Kuwait government and KFAED for their continued support of Pakistan’s development agenda.
He noted that this concessional financial assistance reflects the brotherly relations and sustainable partnership between the two countries. He also praised Kuwait Fund’s contributions in energy, water, and social sector projects that play a significant role in Pakistan’s socio-economic growth.
The Mohmand Dam project aims to enhance water storage capacity, generate clean energy, supply drinking water to Peshawar, and help control floods in the region.
This is the second phase of the financing agreement; the first loan was signed in June 2024. The total financing of 30 million Kuwaiti dinars ($100 million) will be released in four equal installments. Karim urged early signing of the third agreement and invited the Kuwait Fund to consider financing other
