Pakistan and Germany have signed a financing agreement for Billion Tree Afforestation Support Program (Phase-1). The agreement was signed between Secretary Economic Affairs Division, Mian Asad Hayaud Din, and KfW Development Bank Country Director, Sebastian Jacobi, in Islamabad.
Under the agreement, Germany will provide a grant of €13.5 million to Pakistan for the project through the KfW Development Bank.
With the funds provided by the German government, KfW Development Bank will support Pakistan’s efforts to reduce the impacts of climate change by planting 10 billion trees, introducing best practices on native and invasive plant species, training on firefighting techniques and provision of equipment, and women/youth engagement and empowerment.
The project will result in a clean and green environment through a reduction in carbon emissions and also bring about socio-economic benefits to local communities.
While addressing the occasion, Sebastian Jacobi said that KfW is actively supporting Pakistan in the energy and climate sector with an active portfolio of more than €300 million. KfW has provided funding for construction and rehabilitation of three hydropower projects, construction of power substations, installation of micro-hydel power plants, and is also providing micro-financing for solarization of homes in off-grid areas.
These efforts will result in bringing a sustainable and lasting positive impact in the lives of the deserving communities in the country and help mitigate the risks of climate change, he added.
Asad Hayaud Din expressed gratitude to the German government for supporting the flagship project of the government of Pakistan. He highlighted that Pakistan has set ambitious targets to mitigate the impact of climate change. Commending the continued support of Germany, he said that the investments will lead to a better and healthy future for the coming generations.
The German government is also considering providing another €20 million for the next phase of the project. These investments will result in sustainable forest management by the government institutions and create jobs, especially for women and youth.
The signing of the agreement coincides with the celebrations of 60 years of development cooperation between the two countries.
