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 project aims to improve electricity access 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 provide financial support for projects that use local water resources to produce renewable electricity.
Many northern communities rely on small power systems or face electricity shortages, especially in winter. Hydropower projects supported under this agreement are expected to provide stable electricity for homes, schools, and health centers in these areas.
Officials said the initiative will also support local economic activity. Reliable electricity can help small businesses operate more effectively and improve tourism-related services in mountain regions. Northern Pakistan is known for its natural landscapes and receives visitors from around the world.
During the signing ceremony, Humair Karim thanked the German government for its continued support in development projects. He said environmentally friendly energy programs are important for both economic progress and environmental protection.
Both countries also expressed interest in expanding cooperation in renewable energy and other sustainable development initiatives in the future.
American Dollar Exchange Rate