Pakistan01 November, 20252 min read
Pakistan and Kuwait Sign $25 Million Loan to Expand Mohmand Dam Hydropower Project
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Pakistan and Kuwait signed a second loan agreement worth $25 million for Mohmand Dam. The loan was formalized between Pakistan’s Economic Affairs Division and Kuwait Fund for Arab Economic Development.
6 outlets told this the same way.
Outlets did split on Passenger Train Derails Near Sher Shah Bridge In Punjab, Killing Four And Injuring 30 →
Pakistan-Kuwait Dam Loan Deal
Pakistan and Kuwait signed a $25 million second loan to support the Mohmand Dam Hydropower Project. The agreement was formalized between Pakistan’s Ministry of Economic Affairs and the Kuwait Fund for Arab Economic Development (KFAED). Reports specify the amount as 7.5 million Kuwaiti dinars, which is about $25 million.
“Pakistan has secured a concessional loan of approximately Rs. 7 billion (around 25 million USD) from Kuwait to support the Mohmand Dam Hydropower Project.”
Arab News added that this loan follows an initial agreement made in June 2024. The $25 million is part of a larger $100 million package to be disbursed in four tranches. The signing took place in Islamabad and highlights the strengthening of bilateral ties behind the financing effort.
Mohmand Dam Project Benefits
The Mohmand Dam project is a multi-purpose infrastructure effort aimed at expanding clean, low-cost hydropower. It also seeks to improve water storage and supply drinking water to Peshawar. Additionally, the project aims to bolster irrigation and strengthen flood control.
West Asian coverage estimates the expected energy output at 800 MW, or about 2,862 GWh annually. The project is linked to reducing Pakistan’s energy supply gap. Other sources highlight additional benefits such as providing water to Peshawar and mitigating floods in Khyber Pakhtunkhwa.
Pakistan-Kuwait Financial Partnership
Outlets also frame the loan within broader strategic partnerships. Arab News and Arab News PK stress that the financing reflects strong bilateral ties and international backing, including under the China-Pakistan Economic Corridor (CPEC).
“The dam is a key infrastructure initiative supported by international financing, including under the China-Pakistan Economic Corridor (CPEC).”
ProPakistani reports that Pakistan’s Economic Affairs Secretary highlighted the strength of the Pakistan–Kuwait partnership and even invited Kuwait to consider funding additional development projects. Minute Mirror reports the deal as reinforcing Kuwait’s commitment, with Pakistani officials expressing gratitude for Kuwait’s financial and technical support tied to socio-economic progress.
Details of Kuwait's $100M Deal
Financially, reports consistently situate this deal as part of a $100 million KFAED package, but they differ on framing. Arab News specifies the structure—four tranches agreed earlier in 2024 and a prior signing in June 2024—while Arab News PK mentions “multiple tranches” without a specific number.
ProPakistani emphasizes the ‘second tranche’ and states the local currency equivalent (~Rs 7 billion), while Minute Mirror calls it the “second phase” of Kuwait’s pledged $100 million contribution. Together, the accounts align on the $25 million value while using different denominations (KD, USD, PKR) to convey scale.
Media Coverage of Pakistan Loan
One outlet we reviewed situates the loan in a broader regional news context. Arab News PK reports, alongside the financing story, that Pakistan reopened the Torkham border crossing for Afghan refugee returns after recent clashes, while noting trade remains suspended.
“Additionally, Pakistan reopened the Torkham border crossing for Afghan refugee returns, although trade remains suspended following recent clashes between Pakistan and Afghanistan.”
In contrast, Arab News, ProPakistani, and Minute Mirror stay narrowly focused on the loan and project benefits like hydropower generation, water storage, irrigation, flood control, and drinking water for Peshawar. This reflects different editorial choices—some pairing the financing with related regional developments, others concentrating on the investment and its anticipated socio-economic returns.
