Pakistan’s Energy Sector released the most wanted news on this blessed Friday related to the funds for the development and support of Pakistan. It is reported that Saudi Fund for Development (SFD) has decided to announce a loan of $240 million for the betterment of Pakistan’s economy. Saudi Fund for Development signed this agreement with Pakistan for support and to resume the construction of the Pakistan Mohmand Dam Project in northwestern Khyber Pakhtunkhwa.
The agreement was signed at a ceremony held at the capital of Pakistan Islamabad. Saudi Ambassador to Pakistan Nawaf Bin Said Al- Malki also attended the ceremony. Sultan Abdul-Rahman Al-Marshad, the CEO of Saudi Funds for Development (SFD), and Dr. Kazim Niaz, the federal secretary of the Ministry of Economic Affairs, both signed the contract.
As we know that Saudi Arabia is a leading member of the Organization of Islamic Cooperation (OIC). Saudi Arabia has always been a good supporter of Pakistan. Pakistan has always praised the relations between both countries since the creation of Pakistan. This loan represents a strong partnership between Saudi Arabia and Pakistan in promoting sustainable development and achieving Sustainable Developments Goals
What will be the Impact of this Initiative on Pakistan’s Economy?
As we all know Pakistan’s economy is going through difficult days. Let’s discuss its impact on Pakistan’s economy at Daily Pakistan:
1: Flood Relief:
According to the news release, the dam will considerably Improve flood resilience, strengthen the country’s sustainable water supply for agriculture, and promote energy security. Unmute by this financing, Saudi Arabia and Pakistan are demonstrating their commitment to advancing sustainable development and meeting the Sustainable Development Goals.
2: Mohmand Dam:
About the Mohmand Dam’s Project it is estimated that nearly 80% of the population in Khyber Pakhtunkhwa Province lives in the rural areas, the Mohmand Dam project would improve food and water security for the people living there as well as the quality of life for locals. The project is in line with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy), and embraces SDG-17. It will help in increasing socio-economic development by generating employment opportunities and lowering poverty levels in these areas (Partnerships for the Goals).
3: Energy Resources:
The project will produce roughly 800 Megawatts of electricity utilizing renewable energy sources, enhancing Pakistan’s energy security. Also, the province’s total cropping area will rise from 1,517 hectares to 9,227 hectares thanks to the storage of 1.6 million acre-feet of water, which will enable irrigation of 6,773 hectares of new land and support sustainable agricultural practices. Let’s see if our Energy and Resource Ministries are able to meet their given estimated targets up to the mark.
Role of Saudi Funds for Development:
The CEO of the Saudi Funds Development (SFD) underscored the project’s importance of cooperative cooperation between development aid during the agreement signing event, as well as the close and considerate developmental relations between Saudi Arabia and Pakistan. He added that this initiative is a continuation of SFD’s long-standing support for programs and projects that promote development in Pakistan. Around 41 programs and projects for development have been funded by the SFD in Pakistan to date, totaling roughly $1.4 billion. Additionally, SFD has funded oil derivatives worth more than USD 5.4 billion between 2019 and 2023 to strengthen Pakistan’s economy. This is an unpretentious step of Saudi Arabia’s government’s assistance to the friendly country of Pakistan in its efforts to develop a sustainable economy.
As the second strongest and largest trading partner (Saudi Arabia) of Pakistan, their agreements cover areas such as Standard Specifications, Mineral Resources, Investment in Refining and Petro Chemical Sectors, power generation, development of renewable energy projects, and cooperation in the Field of Youth and Sports and many more. Pakistan also enjoys extensive cultural & defense/military ties with most of the Arab League member states. Saudi Arabia’s Ambassador said that in the future Saudi Government would humbly increase its investment plans for Pakistan to $10 billion from $1 billion and would also consider other different development programs.