Germany Commits €129 Million for Development in Pakistan

Pakistan and Germany signed a financial cooperation agreement worth €129 million at the Economic Affairs Division on Tuesday.

Federal Minister for Economic Affairs, Omar Ayub Khan, witnessed the signing of an agreement between the Ministry of Economic Affairs, Pakistan, and the Federal Ministry for Economic Cooperation & Development, Germany, and appreciated Germany for enhancing bilateral economic cooperation with Pakistan. He congratulated both the countries on completing 60 years of development cooperation.

The biennial Negotiations on Development Cooperation between the Government of the Islamic Republic of Pakistan and the Government of the Federal Republic of Germany were also held at the Economic Affairs Division.

The Pakistani delegation, headed by Mian Asad Hayaud Din, Secretary Economic Affairs Division, comprised representatives of the Ministry of Foreign Affairs, Ministry of Finance, Federal Board of Revenue, and relevant provincial governments. The German delegation was headed by Gisela Hammerschmidt, Commissioner for Asia at the Federal Ministry for Economic Cooperation & Development, and included participants from the German Foreign Office, KfW, GIZ, and BGR.

The two sides took stock of the existing development cooperation and expressed satisfaction over the trajectory of cooperation in different areas since 1961. As a result of the negotiations, Germany committed €129 million for future German Development Cooperation in Pakistan in addition to the ongoing portfolio.

During the current talks, both sides underlined the importance of close cooperation and partnership. The German Federal Ministry for Economic Cooperation & Development committed new funding in three sectors, viz. good governance, climate and energy, and training and sustainable growth.

The new financing will be allocated to different projects of digital governance, social protection, promotion of startups in Pakistan, promotion of solar energy, self-employment of women in the private health sector, and development of hydropower and renewable energy.

The Pakistani side briefed the German counterparts on the ongoing policy reforms and initiatives and the future development priorities of the government, including a focus on transparency, institutional reforms, poverty alleviation, and social protection, human resource development, climate change, and green energy.

The two sides also exchanged views on increasing the cost-effectiveness of development assistance initiatives and the measures to enhance cooperation with the private sector.

Omar Ayub Khan reiterated the government’s resolve to transform the formidable socio-economic security and governance challenges into opportunities and build upon them for the benefit of the nation.



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