Pakistan and Germany have signed a new grant agreement worth €18 million to support hydropower and renewable energy development in Pakistan’s northern regions. The initiative aims to provide reliable electricity in remote areas while promoting clean, sustainable energy.
The agreement was signed by Muhammad Humair Karim, Secretary of Pakistan’s Economic Affairs Division, and Sebastian Jacobi, Country Director of KfW Development Bank. KfW, a German development bank, will fund projects that harness local water resources to generate renewable electricity.
Northern communities often rely on small power systems or face shortages, especially during winter. Hydropower projects under this agreement are expected to supply stable electricity to homes, schools, and health centers.
Officials highlighted that reliable electricity will also support local economic activity, helping small businesses operate efficiently and enhancing tourism services in Pakistan’s scenic northern regions.
During the signing ceremony, Humair Karim thanked the German government for its continued support and emphasized the importance of environmentally friendly energy programs for both economic growth and environmental protection. Both countries expressed interest in expanding cooperation on renewable energy and sustainable development initiatives in the future.