Pakistan has signed a $25 million loan agreement with Kuwait to support the development of the Mohmand Dam Hydropower Project, a major national initiative designed to boost the country’s water and energy security.
This funding represents the second tranche of Kuwait’s $100 million commitment, which will be disbursed in four phases. Located in Khyber Pakhtunkhwa, the Mohmand Dam is a multipurpose project aimed at enhancing water storage, supplying irrigation and drinking water, and producing renewable hydropower.
Officials stated that the dam will play a crucial role in improving flood management, reducing reliance on imported fuels, and promoting sustainable energy generation. Once completed, it is expected to generate hundreds of megawatts of clean electricity and significantly contribute to agricultural productivity in the region.
Both Pakistan and Kuwait reaffirmed their commitment to deepening bilateral cooperation in infrastructure, energy, and sustainable development. The agreement reflects the strong and enduring friendship between the two countries and highlights Kuwait’s continued support for Pakistan’s long-term economic growth and resource management initiatives.
