Pakistan and Kuwait have formalized a $25 million loan agreement to support the Mohmand Dam Project. The agreement strengthens bilateral economic cooperation and reflects the ongoing partnership between the two countries.
The signing ceremony was held at the Ministry of Economic Affairs in Islamabad. Muhammad Humair Karim, Secretary of the Ministry, signed on behalf of Pakistan. Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission at the Embassy of Kuwait, represented Kuwait. Senior officials from WAPDA and the Ministry of Economic Affairs also attended the event.
Karim expressed gratitude to Kuwait and the Kuwait Fund for Arab Economic Development (KFAED) for supporting Pakistan’s development agenda. He said the concessional financing demonstrates the “brotherly relations and enduring partnership” between the two nations.
The Mohmand Dam Project is part of a larger $100 million financing plan agreed during the 5th Session of the Pakistan-Kuwait Joint Ministerial Commission in May 2024. The $25 million loan represents the second tranche of this package, aimed at accelerating construction and enhancing project progress.
Karim noted that the project is progressing smoothly. The funding will help improve water storage capacity, generate clean energy, provide drinking water to Peshawar, and strengthen flood control in the region. He also encouraged KFAED to consider additional financing for other priority projects in Pakistan.
Fahad Hesham H. A. S. Aldousari reaffirmed Kuwait’s commitment to bilateral cooperation and assured continued support for Pakistan’s development initiatives.
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The Mohmand Dam Project is a strategically important initiative for Pakistan, providing benefits in energy, water management, and flood control. This second loan agreement highlights the strong economic ties between Pakistan and Kuwait, as well as their shared commitment to sustainable development.
