ISLAMABAD: A visiting Saudi Fund for Development (SFD) delegation signed two loan agreements of about $100 million with Pakistan’s economic affairs ministry on Friday to finance two important hydropower projects in Azad Jammu and Kashmir (AJK).
The SFD is a Saudi government agency that provides development assistance and financial aid to developing countries in the form of loans and grants. It aims to support these countries in implementing projects that promote economic stability and growth, improve infrastructure and enhance living standards.
The SFD has also been instrumental in aiding Pakistan’s economy by depositing money in the country’s central bank to help boost its foreign exchange reserves. Additionally, it has funded various development projects in Pakistan, including infrastructure, education and health initiatives to contribute to the country’s socio-economic development.
The Saudi agency has now agreed to bankroll two hydropower projects in Azad Kashmir to support Pakistan’s efforts for energy sustainability and economic growth.
“To enhance development cooperation, #SFD CEO, H.E. Mr. Sultan Al-Marshad, signed today with Pakistan’s Secretary Ministry of Economic Affairs, H.E. Dr. Kazim Niaz, two development loan agreements to finance Shounter Hydropower Project worth $66 Million & Jagran-IV Hydropower Project worth $35 Million,” the SFD announced in a social media post.
Earlier, the delegation met Pakistan’s economic affairs minister Ahad Khan Cheema who witnessed the signing of the agreements.
According to a statement released by his office, the two projects “aim at harnessing the indigenously available hydropower potential and generating 70 MW hydropower which will be transmitted to national grid.”
“Moreover, it will help in eradicating the menace of deforestation by providing electricity as an alternative to the energy needs of the local communities, who hitherto are entirely dependent on forest wood,” it added, “and create economic opportunities for socioeconomic uplift of the people of AJK.”
Cheema also appreciated the role and support of SFD to Pakistan at a challenging time and emphasized further strengthening of ties in the future.
The top SFD official leading the delegation also assured the Saudi agency’s continued support to Pakistan.
Later, the SFD delegation met with Prime Minister Shehbaz Sharif who appreciated the support of the Saudi agency while highlighting the need to expedite the processing of new projects.
