Topnewsplanet, ISLAMABAD, April 7 – Pakistan’s multipurpose Mohmand dam project, a significant hydropower complex being constructed in the country’s northwest, would get a $240 million loan from Saudi Arabia as part of the financing agreement, statements from both sides stated on Friday.
According to a statement from Pakistan’s economic affairs ministry, the project would “add to Pakistan’s energy security, boost sustainable water supply for agricultural and human use, and improve resilience to floods.”
The Saudi national news agency also made the same statement in Arabic.
The comments said that “a $240 million financing arrangement has been signed by the Saudi Fund for Development (SFD)”.
With a severe balance of payment issue, the financing will aid Pakistan’s critically low foreign currency reserves as well as meet the country’s 220 million people’s energy demands.
This project with using renewable resources will produce 800 megawatts of electricity and will help in increase of Pakistan’s energy security. which is being financed by the SFD, the organization of Petroleum Exporting Countries, the Islamic Development Bank and the Kuwait Fund for Arab Economic Development.