Pakistan has signed a new concessional loan agreement worth approximately Rs. 7 billion, or around 25 million US dollars, with Kuwait to fund the Mohmand Dam Hydropower Project. The agreement marks another milestone in Pakistan’s efforts to strengthen its water and energy infrastructure through international partnerships.
The loan was formalized at the Ministry of Economic Affairs in Islamabad between the Government of Pakistan and the Kuwait Fund for Arab Economic Development, according to a report by Business Recorder. Senior officials from the Ministry of Economic Affairs and the Water and Power Development Authority (WAPDA) were present at the signing ceremony.
This latest financing represents the second tranche of a broader 100-million-US-dollar commitment that Pakistan has sought from Kuwait to support the ongoing construction of the Mohmand Dam. The project, located in Khyber Pakhtunkhwa, is one of Pakistan’s most significant hydropower and water storage initiatives, aimed at addressing multiple national needs, including irrigation, power generation, and flood control.
Speaking at the event, Economic Affairs Secretary Muhammad Humair Karim expressed appreciation for Kuwait’s continued financial support, describing it as a reflection of the deep and long-standing partnership between the two countries. He noted that work on the Mohmand Dam is progressing steadily and that the new funds will help accelerate the project’s completion. Karim also urged early signing of the next tranche under the financing arrangement and encouraged Kuwait to consider expanding its investment into other development projects in Pakistan.
Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission of Kuwait, reaffirmed his country’s commitment to supporting Pakistan’s development goals, particularly in the areas of energy sustainability and water security. He emphasized that Kuwait values its cooperation with Pakistan and remains keen to contribute to initiatives that enhance the country’s resilience and economic growth.
The Mohmand Dam Hydropower Project is expected to play a vital role in increasing water storage capacity, generating clean and affordable electricity, and providing a reliable drinking water supply for Peshawar. Additionally, it will strengthen flood control mechanisms, helping reduce the impact of climate-driven weather events.
Pakistan continues to pursue diversified financing sources to complete this strategically important project, which stands as a cornerstone of the country’s long-term energy and water management strategy.
