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Islamic Development Bank Approves $252 Million for KPK Dam

By 22/12/2021 March 25th, 2022 0 Comments

The Islamic Development Bank (IDB) has approved a loan of $252 million for Mohmand Dam in Khyber Pakhtunkhwa. This project aims to support the country’s green agenda in the energy sector. The dam will generate 800 megawatts of electricity and will increase the country’s water storage capacity. Mohmand Dam is the world’s fifth-highest concrete-face rockfill dam which will be widely used for hydropower projects.

Dams are important for the hydroelectric and agricultural sectors of a country. About 95% of Pakistan’s water is used for agricultural purposes. However, half of the water is lost due to poor irrigation systems, including misuse, defective canals, and leaking pipes. Pakistan’s existing water policy and system are unable to sustain current levels of growth. Water scarcity in Pakistan is a national security issue causing economic disaster and famine. This project is expected to create a food security buffer and provide clean drinking water for Peshawar’s residents and create job opportunities for the local people.

The IDB is among the leading partners of Pakistan, providing financial resources for developing infrastructure, uplifting the social sector and achieving sustainable economic growth. Pakistan is one of the founding members of the multilateral development bank. Since its inception, the bank has approved $13.6 billion financing for the country, covering all the major sectors of the economy such as energy, industry, agriculture, transport, health, and financial services.

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