🇵🇰🤝🇰🇼 Pakistan, Kuwait Ink $25M Deal to Boost Mohmand Dam Project

ISLAMABAD – November 1, 2025:
Pakistan and Kuwait have formalized a new stage of cooperation through a $25 million financing agreement for the Mohmand Dam Hydropower Project, aimed at advancing clean energy generation and water management in Pakistan.

The Second Loan Agreement, worth Kuwaiti Dinar 7.5 million (approximately USD 25 million), was signed between the Government of Pakistan and the Kuwait Fund for Arab Economic Development (KFAED) during an official ceremony held in Islamabad on Friday.

The agreement was signed by Muhammad Humair Karim, Secretary of the Ministry of Economic Affairs, on behalf of Pakistan, while Mr. Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission at the Kuwaiti Embassy, represented Kuwait. Senior officials from the Ministry of Economic Affairs and WAPDA also attended the event.

Strengthening Bilateral Cooperation

Speaking at the event, Secretary Humair Karim thanked the Government of Kuwait and KFAED for their continued partnership and trust in Pakistan’s development vision. He highlighted that this concessional financing reflects the deep-rooted brotherly ties and long-standing collaboration between the two nations.

He further noted that Kuwait’s financial support in the energy, water, and social sectors continues to play a vital role in strengthening Pakistan’s socio-economic growth and sustainable infrastructure development.

Advancing the Mohmand Dam Project

The latest funding marks the second phase of a larger $100 million commitment by KFAED. During the 5th Pakistan-Kuwait Joint Ministerial Commission meeting in May 2024, Pakistan had requested phased financing for the project. The first loan was signed in June 2024, and this new agreement continues the momentum toward full project completion.

Karim shared that the Mohmand Dam project is progressing steadily, with the second loan expected to further speed up construction activities. Once completed, the project will enhance water storage capacity, generate renewable electricity, improve drinking water supply for Peshawar, and strengthen flood control systems across the region.

He also invited KFAED to consider expanding financial cooperation for other national priority projects under Pakistan’s sustainable development agenda.

Kuwait Reaffirms Support

Mr. Fahad Hesham Aldousari reaffirmed Kuwait’s commitment to enhancing economic cooperation with Pakistan, emphasizing that the Kuwait Fund remains dedicated to supporting Pakistan’s key infrastructure and energy initiatives. He expressed optimism that such collaborations will further strengthen economic ties and mutual prosperity.