Pakistan, Germany ink €40.5mn deal for 9 development projects

Pakistan and Germany on Thursday signed a technical cooperation agreement worth €40.5 million to implement nine development projects across Pakistan, according to the Economic Affairs Division.

The agreement is aimed at strengthening bilateral development cooperation in key sectors, including climate resilience, social protection and renewable energy.

Under the arrangement, the German development bank KfW Development Bank will provide financial and technical assistance for the execution of the nine projects.

The signing ceremony was held between Secretary Economic Affairs Muhammad Humair Karim Kidwai and German Ambassador to Pakistan Ina Lepel, in the presence of senior officials from the Ministry of Economic Affairs and the German Embassy.

Pakistan and Germany have maintained development cooperation since 1961, with the current active bilateral portfolio estimated at around €550 million.

Officials said Germany remains one of Pakistan’s key development partners, with the new agreement reinforcing ongoing collaboration in sustainable development initiatives.

Secretary Economic Affairs Muhammad Humair Karim Kidwai acknowledged Germany’s continued support for Pakistan’s socio-economic development and said the partnership has been built on long-standing trust and cooperation.

German Ambassador Ina Lepel said Germany values its partnership with Pakistan and remains committed to supporting projects focused on sustainable and inclusive development.

She added that the agreement reflects shared priorities in addressing climate change, advancing energy transition goals and reducing social vulnerability through joint initiatives.

The ambassador expressed confidence that the nine projects under the agreement would deliver tangible benefits at the community level and further strengthen bilateral relations between the two countries.