ISLAMABAD: After a successful first financing round, Pakistan and Kuwait have sweetened the deal with the signing of the second loan agreement for the Mohmand Dam Hydropower Project, officials confirmed.
The signing of the deal worth 7.5 million Kuwaiti Dinars (around 25 million USD) took place at a ceremony at the Ministry of Economic Affairs of Pakistan. It was a moment when the contract was signed by Secretary of Economic Affairs Muhammad Humair Karim, who was representing Pakistan and the Deputy Head of Mission at the Embassy of Kuwait, Fahad Hisham H.A.S. Al-Dosari, who was representing Kuwait.
While making this statement, Muhammad Humair Karim also recognized the Government of Kuwait and Kuwait Fund for Arab Economic Development (KFAED) as the main sources of power to Pakistan’s development programs.
Moreover, he conveyed that the initiative is proceeding as scheduled and the funds of the second facility will be used to speed up the building of the staged hydropower project, which is extremely significant. Karim also talked about the necessity of having the third loan agreement signed soon and welcomed the KFAED to consider investment opportunities in other priority sectors of Pakistan.
Deputy head of Mission, Fahad Hisham H.A.S. Al-Dosari, was equally optimistic about bilateral relations, “Kuwait will always be there to strengthen the economic ties between our two countries and we share great pleasure in supporting the development initiatives of Pakistan,” he said.
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The Mohmand Dam project, a major water and energy initiative in Pakistan, had earlier been extended a first loan instalment in June 2024. The total finance agreement with the Kuwait Fund is for 30 million Kuwaiti Dinars (approximately 100 million USD) to be released in four equal instalments. The signing of the second loan agreement marks the stage of consequent disbursement.
