Pakistan, KfW sign €18m grant deal to promote hydropower, renewable energy

Pakistan and the German government’s development bank KfW on Friday signed a grant agreement worth €18 million to promote hydropower and renewable energy projects in the country’s northern areas.

The agreement was signed by Secretary Economic Affairs Division Muhammad Humair Karim and KfW Country Director Sebastian Jacobi, according to a statement issued by the Ministry of Economic Affairs.

Under the agreement, the grant assistance will support the development of clean and green electricity in northern regions by utilising abundant water resources, with the aim of improving livelihoods and living standards of local communities.

Speaking on the occasion, Karim thanked the German government for the financial support, saying the initiative would help address the growing energy needs of the region through environmentally friendly solutions.

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He said the government valued Germany’s continued support in investing in development initiatives that benefit local populations and expressed hope for further strengthening bilateral cooperation in the future.

Jacobi said the grant would help provide access to sustainable and green energy for people living in northern areas, contributing to socio-economic development.

He added that the initiative would also create employment opportunities and help promote tourism in the region.