Pakistan and Kuwait have signed a second loan agreement worth $25 million to support the Mohmand Dam Hydropower Project, marking another step in strengthening bilateral economic cooperation between the two countries.
The agreement, valued at Kuwaiti Dinar 7.5 million, was formalised at the Ministry of Economic Affairs in Islamabad. It was signed between the Government of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED).
Muhammad Humair Karim, Secretary of the Ministry of Economic Affairs, signed the agreement on behalf of Pakistan. Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission at the Embassy of Kuwait, along with senior officials from the Ministry and WAPDA, also attended the ceremony.
During the signing event, Secretary Karim expressed deep appreciation for Kuwait’s continued financial support of Pakistan’s development projects. He said the Kuwait Fund’s concessional financing reflects the strong and brotherly relations between the two nations.
He highlighted that the fund has significantly contributed to Pakistan’s energy, water, and social sector development, helping improve the country’s socio-economic landscape.
It was noted that during the 5th Session of the Pakistan-Kuwait Joint Ministerial Commission in May 2024, Pakistan had requested total financing of Kuwaiti Dinar 30 million ($100 million) for the Mohmand Dam project, to be disbursed in four equal tranches.
According to the ministry, the Mohmand Dam Hydropower Project is progressing well. The newly signed loan will accelerate construction work on the vital project, which aims to enhance water storage, generate clean energy, supply drinking water to Peshawar, and improve flood control systems.
Karim also urged early signing of the third loan agreement and invited the Kuwait Fund to consider funding additional priority development projects in Pakistan.
Representing Kuwait, Aldousari reaffirmed his government’s commitment to expanding economic cooperation and assured continued support for Pakistan’s development initiatives.
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