Pakistan and Kuwait have finalized the second loan agreement worth 7.5 million Kuwaiti Dinars (approximately $25 million) to support the Mohmand Dam Hydropower Project, further strengthening economic cooperation between the two countries.
The agreement was signed at the Ministry of Economic Affairs in Islamabad between the Government of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED).
Secretary of the Ministry of Economic Affairs, Muhammad Humair Kareem, signed the agreement on behalf of Pakistan. The ceremony was attended by senior officials from the Ministry, WAPDA, and Kuwait’s Embassy— including the Deputy Head of Mission, Fahad Hasham.
Strengthening Bilateral Partnership
Speaking at the event, Secretary Humair Kareem expressed heartfelt gratitude to the Kuwaiti government and KFAED for their continued support of Pakistan’s development agenda.
He highlighted that this concessional financing reflects the brotherly relations and long-term partnership between Pakistan and Kuwait.
Kareem appreciated the Kuwait Fund’s contribution to Pakistan’s energy, water, and social sector projects, noting that these initiatives play a crucial role in the country’s socio-economic development.
Background of the Project
During the 5th meeting of the Pakistan–Kuwait Joint Ministerial Commission in May 2024, Pakistan requested Kuwait Fund to expedite the signing of the 30 million Kuwaiti Dinars financing package for the Mohmand Dam project, to be disbursed in four equal installments.
Following the signing of the first loan agreement in June 2024, this newly signed agreement represents the second phase of financing.
Project Progress
Humair Kareem informed officials that the project is progressing smoothly and that the second loan tranche will help accelerate construction activities. The Mohmand Dam project aims to:
- Increase water storage capacity
- Generate clean, renewable energy
- Supply drinking water to Peshawar
- Improve flood control in Pakistan
This enhanced support from Kuwait is expected to significantly boost the timely completion of one of Pakistan’s most strategic hydropower and water security initiatives.
