---
title: 'Pakistan, KfW Sign €18m Renewable Energy Grant Agreement'
url: 'https://thediplomaticinsight.com/pakistan-kfw-e18m-renewable-energy-agreement/'
author: 'Sohail Majeed'
date: '2026-03-14T13:14:53+05:00'
categories:
  - 'Economy'
---

# Pakistan, KfW Sign €18m Renewable Energy Grant Agreement

**Islamabad (TDI):** The Government of Pakistan and the KfW Development Bank have signed a grant agreement worth €18 million aimed at promoting hydropower and renewable energy projects in the country’s northern areas.

The agreement was signed by Muhammad Humair Karim, Secretary of the Economic Affairs Division, and Sebastian Jacobi, Country Director of KfW. Under the agreement, the German development bank will provide financial assistance to support clean and green electricity generation in the northern regions by utilizing the area’s abundant water resources.

Muhammad Humair Karim, Secretary, Ministry of Economic Affairs thanked the German Government for the grant assistance which will be helpful in addressing the increasing energy needs of the region while employing environment friendly solutions.

**Read More: [US Temporarily Allows Sale of Russian to Ease Global Energy Crisis](https://thediplomaticinsight.com/us-allows-russian-oil-sale-in-energy-crisis/)**

He said that these initiatives are truly commendable as they are geared to impact the lives of the common man. He added that Government of Pakistan values this support of the German Government to invest in such schemes and looks forward to further strengthening future cooperation.

**Read More: [Iran War Triggers Global Energy and Geopolitical Shock: Masood Khan](https://thediplomaticinsight.com/iran-war-triggers-global-energy-geopolitical-shock/)**

Sebastian Jacobi, Country Director KfW while talking on the occasion said that through this grant assistance the people of the northern areas will have access to the green and sustainable energy, which will contribute towards socio-economic uplift of the masses. This will also help to create more jobs and promote tourism in the area.