Pakistan signs loan agreement with Denmark for wastewater treatment project

Pakistan and Denmark’s Danida Sustainable Infrastructure Finance (DSIF) signed a concessional loan agreement on Friday for the “Construction of Eastern Wastewater Treatment Plant (33 MGD)” in Faisalabad. 

The agreement was formalized by Muhammad Humair Karim, Secretary of Pakistan’s Ministry of Economic Affairs, along with Tina Kullerup Hausen, Managing Director of DSIF, and Jesper B. Petterson, Managing Director of Danske Bank.

The project marks Danida’s first intervention in Pakistan’s development sector in several years and is the first loan signed under the Pakistan-Denmark Framework Agreement, which was finalized in 2022.

This wastewater treatment plant is set to play a crucial role in enhancing Faisalabad’s urban infrastructure by improving wastewater management. It aims to contribute to environmental protection, public health, and the creation of resilient urban systems. 

The project aligns with Pakistan’s goal of promoting sustainable urban development and reflects the government’s commitment to fostering stronger cooperation with international development partners to address urban challenges.