Saudi Arabia on Friday signed a $240 million loan agreement with Pakistan to support the Mohmand Dam project in northwestern Khyber Pakhtunkhwa province, official said.
The agreement was signed at a ceremony in the capital Islamabad and attended by Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki and senior officials from the Ministry of Economic Affairs.
"Pakistan's energy security gets a major boost with $240M loan from Saudi Fund for Development (SFD)," the ministry said in a tweet.
After signing the agreement, a senior ministry official stated that the Mohmand Dam project will improve food and water security while also boosting socioeconomic development in the province.
The dam, located in Khyber Pakhtunkhwa province, was damaged by a devastating flood last year that inundated a third of the country, causing a colossal loss of roughly $30 billion to the country's already sputtering economy, which has been trying to recover from the shocks of the global coronavirus pandemic.
In August, during a visit to the dam site after a heavy flood, Prime Minister Shehbaz Sharif said the dam will generate 800 megawatts of electricity while also providing water for irrigation and helping to save the area from flooding.