ISLAMABAD:

The Saudi Fund for Development (SFD) has signed two loan agreements to the tune of $107 million with Pakistan for hydropower projects in Azad Jammu and Kashmir (AJK).

A visiting SFD delegation called on Economic Affairs Minister Ahad Khan Cheema in Islamabad.

Later, Economic Affairs Division Secretary Dr Kazim Niaz and SFD CEO Sultan Bin Abdul Rehman Al-Marshad signed the loan pacts worth $66 million for the 48 MW Shounter Hydropower Project and $41 million for the 22 MW Jagran IV Hydropower Project.

According to a news statement issued by the Economic Affairs Division, these endeavours are aimed at harnessing the indigenously available hydropower potential and generating 70 MW of electricity, which will be transmitted to the national grid.

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It further read that the move would also help in eradicating the menace of deforestation by providing electricity as an alternative to the energy needs of the local communities, who were entirely dependent on forest wood.

In addition, it will create economic opportunities for the socioeconomic uplift of the people of AJK.

The statement added that the economic affairs minister witnessed the signing ceremony.

The SFD is a Saudi government agency that provides uplift assistance and financial aid to developing countries in the form of loans and grants.

The SFD is a Saudi government agency that provides uplift assistance and financial aid to developing countries in the form of loans and grants.