The Saudi Fund for Development (SFD) has solidified its commitment to bolstering Pakistan’s energy infrastructure by signing two loan agreements amounting to $107 million. The funds are allocated for hydropower projects in Azad Jammu and Kashmir (AJK), aimed at harnessing the region’s abundant hydroelectric potential.
During a meeting between a delegation from SFD and Pakistan’s Economic Affairs Minister Ahad Khan Cheema in Islamabad, the loan pacts were formalized. Economic Affairs Division Secretary Dr. Kazim Niaz and SFD CEO Sultan Bin Abdul Rehman Al-Marshad signed the agreements, allocating $66 million for the 48 MW Shounter Hydropower Project and $41 million for the 22 MW Jagran IV Hydropower Project.
The primary objective of these initiatives is to leverage locally available hydropower resources to generate 70 MW of electricity, which will be integrated into the national grid. This move is anticipated to address the energy needs of the region and mitigate the prevalent issue of deforestation, as local communities currently rely heavily on forest wood for their energy requirements.
Moreover, the projects are expected to foster economic opportunities in AJK, contributing to the socio-economic development of the region.
Economic Affairs Minister Ahad Khan Cheema presided over the signing ceremony, underscoring the significance of the agreements in advancing Pakistan’s energy sector and promoting sustainable development.
The Saudi Fund for Development, a key player in global development assistance, provides financial support to developing countries through loans and grants. Its collaboration with Pakistan underscores the longstanding partnership between the two nations and their shared commitment to mutual progress and prosperity.
The loan agreements mark another milestone in Pakistan’s journey towards achieving energy security and sustainable development, reaffirming the nation’s dedication to harnessing renewable energy sources and addressing the pressing challenges of climate change and energy scarcity.
