PTBP Web Desk
Pakistan and Kuwait on Friday signed the second loan agreement worth Kuwaiti Dinar 7.5 million (approximately $25 million) for the Mohmand Dam Hydropower Project. The agreement underscores Kuwait’s continued support for Pakistan’s infrastructure and energy development initiatives, further solidifying economic cooperation between the two countries.
The signing ceremony was held at the Ministry of Economic Affairs in Islamabad, where the agreement was formally inked between the Government of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED).
According to an official announcement, Muhammad Humair Karim, Secretary of the Ministry of Economic Affairs, signed the agreement on behalf of Pakistan. Representing Kuwait, Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission at the Embassy of the State of Kuwait, attended the ceremony along with senior officials from the Ministry of Economic Affairs and WAPDA (Water and Power Development Authority).
Speaking at the event, Humair Karim expressed Pakistan’s profound gratitude to the Government of Kuwait and KFAED for their continuous support of Pakistan’s development agenda. He noted that this concessional financing reflects the brotherly relations and longstanding partnership between the two nations.
Karim appreciated the Kuwait Fund’s financial contributions in energy, water, and social sector projects, which have played a significant role in Pakistan’s socio-economic development. He highlighted that the Mohmand Dam project is among the country’s strategic infrastructure priorities, aimed at achieving sustainable water management, renewable energy generation, and flood control.
The Mohmand Dam Hydropower Project, located in Khyber Pakhtunkhwa, is a multi-purpose development initiative designed to provide multiple benefits including power generation, irrigation, and drinking water supply. Once completed, it is expected to generate 800 megawatts of clean energy, store 1.2 million acre-feet of water, and reduce the risk of seasonal flooding in the region.
During the 5th Session of the Pakistan-Kuwait Joint Ministerial Commission (JMC) held in May 2024, Pakistan had requested the Kuwait Fund to expedite the signing of a total financing agreement worth Kuwaiti Dinar 30 million (around $100 million) for the Mohmand Dam, to be released in four equal tranches.
The first tranche had been successfully disbursed earlier, while the second loan agreement—signed this week—marks another milestone in project financing. The third and fourth tranches are expected to be finalized soon, as the project continues to progress smoothly under the supervision of WAPDA and the Ministry of Water Resources.
Secretary Humair Karim informed the gathering that disbursement under this second loan will accelerate construction activities at the dam site. He emphasized that the project’s timely completion would significantly enhance Pakistan’s water storage capacity, generate renewable energy, and supply drinking water to Peshawar city and nearby areas.
He further highlighted that the dam would also play a crucial role in flood control, agricultural sustainability, and climate resilience, addressing some of Pakistan’s most pressing water management challenges.
Looking ahead, Karim stressed the importance of early signing of the third loan agreement and extended an invitation to the Kuwait Fund to explore additional financing opportunities for other priority projects in Pakistan, particularly in renewable energy, transportation, and water resource management sectors.
He reaffirmed Pakistan’s commitment to maintaining a transparent and efficient use of funds, ensuring that all projects financed through international cooperation contribute directly to sustainable growth and national development goals.
Speaking on behalf of the Government of Kuwait, Fahad Hesham H. A. S. Aldousari reaffirmed his government’s strong commitment to strengthening bilateral economic ties. He expressed satisfaction with the progress of the Mohmand Dam project and assured the KFAED’s continued financial and technical support for Pakistan’s ongoing and future development projects.
Aldousari described the partnership as a model of Arab-Pakistani cooperation, emphasizing that Kuwait remains a trusted partner in Pakistan’s pursuit of energy security, infrastructure modernization, and sustainable development.
The Mohmand Dam Hydropower Project is a strategic component of Pakistan’s broader National Water Policy and Energy Security Plan. Its completion will not only address recurring water shortages but also boost hydropower capacity, reducing reliance on expensive imported fuels.
Moreover, the project supports Pakistan’s sustainable development goals (SDGs) by promoting clean energy, climate adaptation, and inclusive economic growth in underdeveloped regions. The ongoing partnership with Kuwait also complements Pakistan’s outreach to other Gulf Cooperation Council (GCC) countries for infrastructure and investment collaboration.
The latest agreement between Pakistan and Kuwait adds momentum to their expanding economic relationship, which has also included cooperation in education, healthcare, and social welfare projects funded by KFAED.
As both countries continue to deepen economic collaboration, the Mohmand Dam stands as a symbol of friendship, progress, and mutual trust—a landmark project that embodies the shared vision of a prosperous and energy-secure Pakistan.
