Pakistan and Germany have signed a significant agreement worth €40.5 million (around Rs. 12.3 billion) to fund nine new development projects in Pakistan. The agreement was signed by Secretary Economic Affairs Division Muhammad Hameer Karim and German Ambassador Anna Lieppel in Islamabad.
The funding, provided by the German Development Bank (KfW), will support key sectors including climate change adaptation, renewable energy, water management, sanitation, and social protection programs. The current active bilateral development portfolio between the two countries stands at approximately €550 million.
This new package further strengthens the long-standing bilateral cooperation between Pakistan and Germany. Germany has been a consistent development partner of Pakistan, focusing on green growth, poverty alleviation, and environmental protection.
Both sides described the agreement as a positive step toward expanding Pakistan’s development portfolio. Officials highlighted that the projects will promote inclusive growth and help Pakistan address pressing challenges such as climate change and energy transition.
This latest commitment from Germany reflects strong and continuing trust in Pakistan’s development agenda and is expected to play a vital role in improving living standards and building resilience in vulnerable areas.
