Saudi Fund for Development (SFD) has signed a $240 million loan agreement to support Mohmand Multipurpose Dam Project, a major hydropower complex in Pakistan.

The complex will contribute to Pakistan’s energy security, increase sustainable water supply for agriculture and human consumption and improve resilience to floods.

According to the statement, this loan represents a strong partnership between Saudi Arabia and Pakistan in promoting sustainable development and achieving the SDGs.

The Mohmand Multipurpose Dam Project will enhance water and food security, and improve the standard of living for people living in the Khyber Pakhtunkhwa province, where almost 80 percent of the population resides in rural areas, boosting the region’s socioeconomic development by creating employment opportunities and reducing poverty levels.

“This initiative is an extension of SFD’s continued support for development projects and programs in Pakistan since its inception. To date, SFD has financed around 41 development projects and programs in Pakistan, amounting to approximately $1.4 billion, In addition, SFD has financed between 2019 and 2023, oil derivatives worth more than $5.4 billion, to support Pakistan’s economy, this comes as a continuation of the support provided by the Government of Saudi Arabia to the brotherly country Pakistan to build a sustainable economy.”

The project aligns with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals).

The Mohmand Multipurpose Dam Project, which is co-financed by the Saudi Fund for Development, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development is expected to have a significant impact on Pakistan’s energy and water sectors.