Germany’s KfW development Bank to invest in Pakistan’s power, health sectors

€2.5mn for transmission of renewable energy and €1.5mn for health to be granted to Pakistan

ISLAMABAD: The Ministry of Economic Affairs and KfW, the German government’s development bank, solidified their partnership on Monday with the signing of agreements aimed at enhancing Pakistan’s power transmission sector and supporting the health sector, especially in flood-affected areas.

As per details in a ceremony held in Islamabad on Sunday, Mr. Sebastian Jacobi, Country Director of KfW, and Dr. Kazim Niaz, Secretary of the Ministry of Economic Affairs, inked agreements signifying Germany’s commitment to furthering Pakistan’s development goals. Managing Director of NTDC, Engr. Dr. Rana Abdul Jabbar Khan, was also present.

Under the “Promotion of Renewable Energies and Energy Efficiency” program, KfW, representing the German government, will provide an additional grant of Euro 2.5 million to the National Transmission and Despatch Company (NTDC). This funding will assist NTDC in ensuring the effective operation and maintenance of installations, incorporating robust environmental and social management systems. The initiative aims to enhance the integration of needs-based renewable energy into the transmission system, contributing to sustainable economic growth and climate protection.

In another significant move, KfW will allocate an additional Euro 1.5 million to the “Self-Employment of Women in the Private Health Sector” program. This initiative aims to empower women economically by establishing 400 clinics in Punjab and Khyber Pakhtunkhwa, creating income-generating opportunities. The support is designed to foster inclusive and sustainable economic growth while concurrently improving reproductive health services in rural areas.

Expressing gratitude, Mr. Kazim Niaz, Secretary of the Ministry of Economic Affairs, acknowledged the German Government’s steadfast support and commended KfW for its pivotal role in fostering economic growth and sustainable development in Pakistan. In response, Mr. Sebastian Jacobi emphasized that KfW’s funding in the energy and governance sectors will not only drive sectoral improvements but also contribute to the socio-economic uplift of beneficiaries through job creation and infrastructure development.

Highlighting the longstanding economic cooperation between Germany and Pakistan, dating back over 60 years, Mr. Jacobi noted that Germany has consistently supported Pakistan in infrastructure development and improving social conditions.

Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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