AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Follow us

ISLAMABAD: Pakistan signed an inter-governmental framework agreement with the Government of Denmark for interest-free loans in renewable energy, energy efficiency, water supply and wastewater treatment sectors.

This framework agreement offers the Danida Sustainable Infrastructure Finance (DSIF) Facility by the Danish side which would provide interest-free but tied loans up to but not limited to € 100 million who would also facilitate transfer of technology and know-how from Denmark to Pakistan.

The interest-free loans after signing this framework agreement will have a 35 percent concessionary element covering the interest on the loan, export premium, bank margin and an upfront grant if these expenses do not arrive at 35 percent of the contract amount.

Muhammad Humair Karim, Secretary Ministry of Economic Affairs and Lis Rosenholm, Ambassador of Denmark to Pakistan, signed the inter-governmental framework agreement between the governments of Pakistan and Denmark.

The Federal Cabinet accorded approval to the signing of the framework agreement with Denmark on August 4, 2022.

This framework agreement is a breakthrough in the bilateral and economic relations between Pakistan and Demark, who have been partners in successful development cooperation since 1969, however, there had been no active on-budget financial support extended by Denmark since 2017.

Bilawal to visit Denmark this month

The efforts to revive bilateral economic and development cooperation between the two countries paid off with Denmark agreeing to provide on-budget support to the Government of Pakistan through this inter-governmental framework agreement.

This framework agreement would act as an umbrella agreement for potential development sector projects emanating from it mainly in the sectors of renewable energy, energy efficiency, water supply and wastewater treatment sectors. Each project will have its separate financing agreement, which will be negotiated with the Danish side case by case in consultation with all the stakeholders.

Currently, wastewater treatment projects in Faisalabad and Lahore are in the pipeline, which are to be negotiated under the ambit of this framework agreement.

Rosenholm also had a meeting with the Minister for Economic Affairs, Sardar Ayaz Sadiq, in his office. He apprised the ambassador that Pakistan and Denmark enjoy a friendly and cordial relationship and a lot of potential exists to enhance the relationship between both nations.

He further stated that the efforts to revive bilateral economic and development cooperation between the two countries paid off with Denmark agreeing to provide on-budget support to the Government of Pakistan through this inter-governmental framework agreement and the focus on waste water treatment projects in Faisalabad and Lahore is immensely appreciated.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Framework agreement signed: Denmark to provide interest-free loans in four sectors

IK says will dissolve assemblies ‘very soon’

Provinces’ power sector schemes: Rs8.11bn approved by ECC

Effective Nov 2022: Agri consumers of Discos, KE have to pay Rs23.30/unit

PTI Sindh MPAs hand in their resignation

Dues against consumer billing collection: KE seeks MoF’s help for release of over Rs4.5bn collected by Pakistan Post

COAS urged to disassociate himself from Bajwa’s ‘controversial’ actions

Public limited companies: Conditions for launching REITs schemes laid down

Income tax arrears: Nov collection up Rs2.33bn to Rs8.98bn YoY

Centcom chief, COAS discuss security cooperation

Asset-backed securitization rules: SPVs allowed to offer debt securities