ISLAMABAD: Pakistan and Germany on Tuesday signed a financial cooperation agreement amounting to €129 million to finance development projects.
Federal Minister for Economic Affairs Omar Ayub Khan witnessed the signing of the financial cooperation agreement amounting between the Ministry of Economic Affairs and Germany’s Federal Ministry for Economic Cooperation and Development.
The new financing will be allocated to different projects including digital governance Pakistan, social protection, promotion of startups in Pakistan, promotion of solar energy, self-employment of women in private health sector, and development of hydropower and renewable energy.
According to officials, prior to the signing of the agreement, biennial negotiations on development cooperation between the two governments were also held. Secretary Economic Affairs Division, Mian Asad Hayaud Din led the Pakistan delegation, while the German delegation was headed by Commissioner for Asia at the Federal Ministry for Economic Cooperation and Development, Gisela Hammerschmidt and included representatives from the German Foreign Office, KfW, GIZ and the Federal Institute for Geosciences and Natural Resources (BGR).
The two sides took stock of the existing development cooperation and expressed satisfaction at 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 on-going portfolio.
During the current talks, both sides underlined the importance of close cooperation and partnership. The German Federal Ministry for Economic Cooperation and Development committed new funding in three sectors – good governance, climate and energy and training and sustainable growth.
The Pakistani side briefed the German counterparts about ongoing policy reforms and initiatives and future development priorities of the government, which include a stronger focus on transparency, institutional reforms, poverty alleviation and social protection, human resource development, climate change and green energy.
Both sides also exchanged views on increasing the cost effectiveness of development assistance initiatives and the measures to enhance cooperation with the private sector.
Minister for Economic Affairs, Omar Ayub Khan, who witnessed the agreement signing ceremony, appreciated Germany’s enhanced bilateral economic cooperation with Pakistan, and expressed that Pakistan and Germany are long-standing development partners and congratulated the both side on completing sixty years of development cooperation.