ISLAMABAD: Pakistan and Kuwait on Friday signed a second loan agreement worth Kuwaiti Dinar 7.5 million (approximately $25 million) to finance the Mohmand Dam Hydropower Project, further deepening bilateral economic cooperation between the two nations.
The agreement was formalised at the Ministry of Economic Affairs in Islamabad between the Government of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED). The document was signed by Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, on behalf of Pakistan. The signing ceremony was attended by Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission, Embassy of Kuwait, along with senior officials from the Ministry and WAPDA.
In his remarks, Secretary Karim expressed gratitude to the Government of Kuwait and the Kuwait Fund for their continued support, noting that the concessional financing reflects the brotherly relations and long-standing partnership between the two countries. He highlighted the Fund’s valuable contributions to Pakistan’s energy, water, and social sector projects, which play a crucial role in the nation’s socio-economic progress.
Karim recalled that during the 5th Pakistan–Kuwait Joint Ministerial Commission meeting held in May 2024, Pakistan had requested the early signing of a total $100 million financing package for the Mohmand Dam Project, to be released in four equal tranches.
He noted that construction work on the project is progressing steadily, and the new disbursement will further accelerate development activities. The dam aims to enhance water storage, generate clean hydropower, provide drinking water to Peshawar, and improve flood control capabilities.
Karim also urged the Kuwait Fund to expedite the third tranche of financing and explore support for other priority infrastructure projects in Pakistan.
Speaking at the ceremony, Fahad Hesham Aldousari reaffirmed Kuwait’s commitment to strengthening bilateral cooperation and assured KFAED’s continued partnership in supporting Pakistan’s development goals.
