Islamabad, 13 January 2023 (TDI): Germany and Pakistan signed two framework agreements totaling Euro 28 million to support Pakistan’s socioeconomic development.
Kazim Niaz, Secretary Ministry of Economic Affairs, and German Ambassador to Pakistan Alfred Grannas signed agreements in the energy and governance sectors.
German Financial Cooperation with Pakistan (KfW) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) representatives participated in the signing ceremony.
Agreements finalized during the signing ceremony
Germany will provide grant financing of €23 million under the framework agreement-Technical Cooperation Agreement 2021 through GIZ.
Under this framework agreement, three projects will be financed namely “Participatory Local Governance”, “Building Transition to Promote Energy Efficiency in Buildings” and “Strengthening Climate Adaptation and Resilience”.
The Participatory Local Governance project with overall financing of Euro 10 Million will boost the service delivery capacities of local authorities. Its purpose is to meet the local needs and priorities of the Punjab and Khyber Pakhtunkhwa (KP) provinces.
Also read: Germany provides additional aid to WFP Pakistan
Another project involving 3 million Euros called “Building Transition to Promote Energy Efficiency in Buildings” has the overall objective to promote energy efficiency.
It is will accomplish by building a transition model through political, legal, and regulatory interventions while using inventories and pilot demonstration models.
Additionally, another framework agreement namely the “Financial Cooperation Agreement 2020” worth a grant of 5 million Euros was also signed.
This agreement will comprise only one project titled, “Self-Employment for Women in the Health Sector” which will be executed by KfW.
Remarks by representatives
While speaking at the ceremony, Kazim Niaz thanked the German Federation Government for its assistance. He praised the important role it is playing in promoting economic growth and sustainable development in Pakistan.
German Ambassador Alfred Grannas stated that Germany’s funding for economic empowerment and governance would aid in sectorial improvement.
It would also result in socioeconomic uplift for the recipients through job creation and long-term development.
Also read: Germany ratifies EU-Canada Free Trade Agreement
It is pertinent to note that the economic cooperation between Germany and Pakistan dates back over 60 years. Since then, Germany has consistently provided assistance to Pakistan in the areas of socioeconomic development and long-term development.
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