Islamabad, Pakistan is seeking a USD 3.5 billion loan from Saudi Arabia to fund the construction of the Diamer-Bhasha Dam, a key infrastructure project aimed at addressing the country's energy and water storage needs.

According to Zameen.Com, the request for financial assistance was made during a visit by a Saudi delegation. The proposal outlines a loan of USD 2.3 billion from Saudi Arabia at a low-interest rate, along with an additional USD 1.2 billion as equity. Saudi Arabia has already contributed USD 240 million to the project and is now reviewing the request with its financial advisor before providing a response.

The total cost of the Diamer-Bhasha Dam project is estimated at USD 8 billion, with USD 4 billion expected to come from external sources. Pakistan has already secured USD 500 million through a Euro Bond. The dam, once completed, will be the largest in Pakistan and the tallest Roller Compacted Concrete dam in the world. It is expected to generate 4,500 megawatts of electricity and store a substantial amount of water, significantly contributing to Pakistan's energy and water supply.

The Saudi delegation's visit and the ensuing discussions highlight the ongoing cooperation between Pakistan and Saudi Arabia in infrastructure development. The outcome of the loan request will play a crucial role in advancing the Diamer-Bhasha Dam project.