Pakistan and Germany Signed Financing Agreements in the Climate Change/Energy and Health Sectors


Islamabad: 26th Nov 2020 : The Government of Germany, through KfW (the German Development Bank) and the Government of Pakistan, represented by the Ministry of Economic Affairs signed three agreements with a cumulative value of Euro 18.5 million. These agreements reiterate the support of the Government of Germany to help the Government of Pakistan fight climate change, resolve the energy issues, provide extended health facilities and combat polio in the country.

Under the Women Employment In Private Health Sector, KfW will provide a grant of Euro 12.00 million exclusively for: (i) the establishment of women’s health clinics in Khyber Pakhtunkhwa and Punjab to promote self-employment of women in the health sector; (ii) the training of qualified women to run the clinics; (iii) consulting services in relation to the coordination, monitoring and reporting of the measures implemented.

For Polio eradication, the Government of Germany, through KfW will provide an additional grant of Euro 5.00 million to augment the existing support for polio eradication. This will help the Government of Pakistan to finance polio vaccines and meet the costs for vaccination campaigns for implementation of Pakistans National Polio Emergency Action Plan. The World Health Organization and the United Nations Children’s Fund (UNICEF) are implementing partners.

Under the climate change/energy component, a grant of Euro 1.5 million is provided to Pakistan to implement Accompanying Services for the Harpo Hydropower Project in the Gilgit-Baltistan region. These accompanying measures are meant to be carried out at the project site in support of the main Harpo Hydropower Project to ensure the project sustainability. The Accompanying Services shall comprise assistance to strengthen the power utility i.e. the Gilgit-Baltistan Power Department as well as accompanying investments in the social infrastructure including relevant consulting measures.

Historically, Pakistan and Germany have enjoyed warm friendly relations since the establishment of our diplomatic ties in 1951. Earlier this year, the Government of Germany, through KfW signed agreements with the Government of Pakistan to provide Euro 27.00 million for Gharo Substation in the province of Sindh and Euro 6.00 million for the Regional Infrastructure Project.