Pakistan and the Saudi Fund for the Construction of the KP Dam execute a loan arrangement worth $240 million.
Karobar
The government has signed a $240 million credit agreement with the Saudi Fund for Development to pay for the Mohmand Multipurpose Dam Project (SFD).
According to a statement published by SFD, the organisation of the Kingdom that offers aid for development to underdeveloped nations, the Mohmand Multipurpose Dam Project would raise the standard of living for citizens in the Khyber Pakhtunkhwa province by improving water and food security.
The project is in line with some of the Sustainable Development Goals set forth by the United Nations and is largely supported by the SFD, OPEC, the Islamic Development Bank, and the Kuwait Fund for Arab Economic Development (SDG). They include things like clean energy, clean water, and food security. The project will significantly affect Pakistan's water and energy industries, the statement claims.
According to SFD, the project will generate 800 Megawatts of electricity by using renewable energy sources, enhancing Pakistan's energy security. Also, the province's overall cropping area will increase from 1,517 hectares to 9,227 hectares thanks to the storage of 1.6 million m3 of water, enabling irrigation of 6,773 hectares of new land and supporting sustainable agricultural practises.
SFD CEO Sultan Abdulrahman Al-Marshad and Dr. Kazim Niaz, Pakistan's Federal Secretary for the Ministry of Economic Affairs, both signed the agreement. The CEO of SFD stressed the growing ties between KSA and Pakistan during the deal-signing ceremony.
Agreement with SFD to finance oil futures worth $1 billion is inked.
He stressed the significance of development funds working together, as evidenced by this project. He continued by saying that this initiative is a continuation of SFD's long-standing support for programmes and projects that promote development in Pakistan.
The statement claims that SFD has so far invested over $1.4 billion in over 41 development projects and programmes in Pakistan. In order to boost Pakistan's economy, SFD has also funded oil derivatives worth more than $5.4 billion between 2019 and 2023.
In September of last year, SFD acknowledged the extension of $3 billion in deposits with Pakistan for an additional year. In December 2021, the SFD made a one-year deposit of the sum as part of a deal with the State Bank of Pakistan to supplement Pakistan's declining foreign exchange reserves.
