Second tranche of Kuwait’s $100 million commitment to boost Pakistan’s hydropower and water resources sector
ISLAMABAD — Pakistan and Kuwait have taken another major step in strengthening their economic and development partnership, as both countries signed a loan agreement worth Kuwaiti Dinar 7.5 million (approximately US$25 million) for the Mohmand Dam Hydropower Project on Thursday.
The agreement was formalized at the Ministry of Economic Affairs in Islamabad, with Mr. Muhammad Humair Karim, Secretary of the Economic Affairs Division (EAD), representing Pakistan, and officials from the Kuwait Fund for Arab Economic Development (KFAED) representing Kuwait. Mr. Fahad Hesham S. Aldousari, Deputy Head of Mission at the Embassy of Kuwait, along with senior representatives from WAPDA and the EAD, were also present at the signing ceremony.
This loan marks the second installment of Kuwait’s pledged financing of Kuwaiti Dinar 30 million (US$100 million) for the project. The first agreement was signed in June 2024, following discussions during the 5th Pakistan–Kuwait Joint Ministerial Commission held earlier that year.
The Mohmand Dam, regarded as one of Pakistan’s most crucial hydropower and water storage projects, aims to strengthen the country’s water security, produce clean energy, and supply drinking water to Peshawar. It will also play a vital role in flood control and improving agricultural irrigation systems across the region.
Speaking at the event, Secretary Humair Karim expressed his gratitude to the Government of Kuwait and the Kuwait Fund for their continuous assistance in Pakistan’s development projects. He described the concessional loan as a symbol of the “brotherly relations and deep-rooted partnership” between the two nations. He also called for the early disbursement of the remaining two tranches, encouraging Kuwait to explore further investment opportunities in Pakistan’s energy, water, and infrastructure sectors.
On behalf of Kuwait, Mr. Fahad Hesham Aldousari reaffirmed his country’s commitment to strengthening bilateral economic cooperation, noting that Kuwait would continue supporting Pakistan’s development priorities through the Kuwait Fund.
According to officials, the latest financing is expected to accelerate construction on the strategically important Mohmand Dam a project seen as a cornerstone for Pakistan’s future energy security and sustainable water management.
