Pakistan, Germany sign €22.4m agreement

Financial assistance will go to projects of renewable energy, grid connections

ISLAMABAD: Pakistan and Germany on Friday signed an agreement under the Pakistan-Germany Development Programme for financial assistance of €22.4 million for existing projects of renewable energy, better grid connections and improved access to financial services through the microfinance initiative of the Pakistan Microfinance Investment Company (PMIC).

Economic Affairs Division Secretary Noor Ahmed and German Embassy Charge d'Affaires Dr Jens Jokisch signed the agreement. Federal Minister for Economic Affairs Hammad Azhar was present at the ceremony.

The agreement included support for social health protection schemes in Khyber-Pakhtunkhwa and Gilgit-Baltistan by providing health insurance to underprivileged people and investment in polio eradication in collaboration with the Ministry of National Health Services, Regulation and Coordination.

According to a statement issued by the Economic Affairs Division, the development cooperation between Pakistan and Germany dated back to 1961 with total financing to date amounting to more than €3 billion.

The two sides looked forward to strengthening cooperation and having meaningful deliberations in forthcoming government-to-government negotiations in Berlin in order to commit funds to future projects and proposals.

Speaking on the occasion, Azhar thanked the German government for the grant assistance geared towards betterment of people in Pakistan.

He was of the opinion that the financial assistance would support key priority sectors of the economy like renewable energy, social health protection and access to financial services.

"The government of Pakistan honours and appreciates financial cooperation from Germany and looks forward to strengthening bilateral relations in future, specifically after government-to-government negotiations in September 2019," Azhar said.

Published in The Express Tribune, July 27^th, 2019.

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