Kuwait Signs $25 Million Loan Deal for Mohmand Dam Hydropower Project

Pakistan has signed a new concessional loan worth around Rs. 7 billion (approximately 25 million US dollars) with Kuwait for the Mohmand Dam Hydropower Project, marking another boost to the country’s strategic water and energy infrastructure. The loan agreement was formalised at the Ministry of Economic Affairs between Pakistan and the Kuwait Fund for Arab Economic Development, reported Business Recorder. This is the second financing tranche under a larger 100-million-US-dollar commitment sought by Islamabad for the project. Senior officials from the Ministry of Economic Affairs and WAPDA attended the signing ceremony. Speaking on the occasion, Economic Affairs Secretary Muhammad Humair Karim said the financial support reflects Pakistan’s close and long-standing partnership with Kuwait. He noted that the Mohmand Dam is progressing well and the new funds will help accelerate work. The project will increase water storage, generate clean hydropower, and ensure drinking water supply for Peshawar, while also supporting flood control. Karim urged early signing of the next tranche and invited Kuwait to explore financing for additional development schemes in Pakistan. Fahad Hesham H. A. S. Aldousari, Deputy Head of Mission of Kuwait, reaffirmed that Kuwait remains committed to supporting Pakistan’s development priorities, particularly in energy and water security. Pakistan has been working to secure diversified financing to complete the Mohmand Dam, considered a critical project for sustainable power generation and resilience against climate-driven flooding.