“Kuwait Extends $25 Million Loan to Pakistan for Mohmand Dam Hydropower Project Boost”
News Article:
In a significant development for Pakistan’s energy and water infrastructure, the Government of Kuwait has approved a $25 million loan to help finance the ongoing Mohmand Dam Hydropower Project, one of Pakistan’s most ambitious power and irrigation initiatives.
According to official sources, the loan has been secured through the Kuwait Fund for Arab Economic Development (KFAED) and is aimed at accelerating construction and enhancing the dam’s hydropower capacity. The agreement was signed between senior officials from Pakistan’s Economic Affairs Division (EAD) and the Kuwait Fund during a high-level meeting in Islamabad.
Project Significance
The Mohmand Dam, located on the Swat River in Khyber Pakhtunkhwa, is a strategic multipurpose project that will address Pakistan’s water scarcity, reduce flood risks, and generate around 800 megawatts of clean electricity once completed. It is also expected to irrigate over 15,000 acres of agricultural land and contribute to regional economic stability.
Strengthening Bilateral Ties
The financial support from Kuwait further deepens Pakistan–Kuwait economic relations, which have long centered around infrastructure, energy, and development cooperation. Officials noted that the Kuwait Fund has previously financed multiple key development projects in Pakistan, including in the sectors of health, transport, and water resources.
Speaking on the occasion, Pakistan’s Minister for Economic Affairs expressed gratitude to the Kuwaiti government for its continued partnership, calling it “a reflection of mutual trust and shared commitment toward sustainable development.”
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Looking Ahead
The Mohmand Dam project, which began in 2019, has faced periodic funding and construction delays due to rising costs and logistical challenges. With Kuwait’s renewed support, authorities hope to expedite critical phases of the project and bring it closer to completion by 2027.
Experts believe that successful completion of the project will not only improve Pakistan’s energy security but also serve as a model for regional water management and renewable power generation.
