ISLAMABAD: Kuwait has extended a concessional loan worth $25 million to Pakistan for the Mohmand Dam Hydropower Project, the Economic Affairs Division (EAD) announced on Friday.
A formal signing ceremony was held at the Ministry of Economic Affairs to finalize the Second Loan Agreement, amounting to Kuwaiti Dinar 7.5 million (approximately US$25 million), between the Government of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED).
The agreement was signed by Muhammad Humair Karim, Secretary of Economic Affairs, on behalf of the Government of Pakistan. The event was attended by Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission at the Embassy of the State of Kuwait, along with senior officials from the Economic Affairs Division and Wapda.
Speaking on the occasion, Secretary Humair expressed gratitude to the Government of Kuwait and the Kuwait Fund for their consistent support of Pakistan’s development initiatives. He said the concessional financing reflects the brotherly relations and enduring partnership between the two nations.
He also acknowledged the Kuwait Fund’s continued assistance in energy, water, and social sector projects, noting that these investments have significantly contributed to Pakistan’s socio-economic progress.
It was recalled that during the 5th Session of the Pakistan–Kuwait Joint Ministerial Commission (JMC) held in May 2024, Pakistan had requested the Kuwait Fund to expedite the signing of financing agreements totaling Kuwaiti Dinar 30 million (US$100 million) for the Mohmand Dam Hydropower Project, to be disbursed in four equal tranches.
Following the first loan agreement signed in June 2024, Friday’s agreement marks the second phase of Kuwait’s financial commitment to the project.
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