Pakistan, KfW sign €18 million grant to boost renewable energy in northern areas

Pakistan and the German government’s development bank, KfW, on Friday signed a grant agreement worth €18 million to promote renewable energy and hydropower projects in the country’s northern regions.

The agreement was signed by Secretary, Economic Affairs Division Muhammad Humair Karim, and KfW Country Director Sebastian Jacobi, according to a statement from the Ministry of Economic Affairs.

Under the deal, the grant will be used to develop clean and green electricity projects, harnessing the abundant water resources of northern Pakistan. The initiative aims to improve local living standards, provide sustainable energy access, and support socio-economic development.

Karim thanked the German government for the financial support, highlighting that the initiative would help meet the growing energy needs of the region through environmentally friendly solutions. He emphasized the importance of continued bilateral cooperation in development initiatives that directly benefit local communities.

Jacobi said the funding would facilitate sustainable energy access, create employment opportunities, and help promote tourism in the northern areas, while contributing to the broader socio-economic development of the region.