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Pakistan Seeks USD 3.5 Billion Loan from Saudi Arabia for Diamer-Bhasha Dam Project

Loan from Saudi Arabia

To accelerate the construction of the Diamer-Bhasha Dam, Pakistan has formally requested a USD 3.5 billion loan from Saudi Arabia. The announcement came during a visit by a Saudi delegation to Pakistan, where officials discussed bilateral cooperation in various sectors.

Loan Proposal and Project Details

Loan from Saudi Arabia

The Diamer-Bhasha Dam project, estimated to cost USD 8 billion, aims to address Pakistan’s energy and water needs. With USD 4 billion funding sourced externally, Pakistan has already secured USD 500 million through a Euro Bond. The proposed loan from Saudi Arabia includes USD 2.3 billion as a low-interest loan and an additional USD 1.2 billion as equity investment.

Saudi Arabia has shown initial support for the project by contributing USD 240 million. The current loan request underscores Pakistan’s commitment to securing essential funding for the construction of the dam, which is poised to become Pakistan’s largest and the world’s tallest Roller Compacted Concrete dam upon completion.

Project Benefits

Once operational, the Diamer-Bhasha Dam will generate 4,500 megawatts of electricity, significantly bolstering Pakistan’s energy sector. Furthermore, it will serve as a crucial water reservoir, ensuring adequate water storage for irrigation and domestic use.

Read more: Punjab Approves Construction of Six New Mini Dams in Rawalpindi

Saudi Arabia will review Pakistan’s loan proposal with its financial advisors before making a decision. The outcome of this deliberation holds significant implications for the timely execution of the Diamer-Bhasha Dam project, a cornerstone of Pakistan’s infrastructure development agenda.


The loan request to Saudi Arabia reflects Pakistan’s proactive approach to securing vital financing for critical infrastructure projects. As both countries deepen their bilateral ties, the successful implementation of the Diamer-Bhasha Dam project stands to benefit the entire region.