Germany pledges to help Pakistan’s energy sector

Merkel promises to increase investment if security provided to German firms.

BERLIN:

Germany is keen to expand its bilateral ties with Pakistan and is eyeing investments in Pakistan’s energy sector – provided companies are reassured about the security situation, German Chancellor Angela Merkel said on Tuesday after a meeting with visiting Prime Minister Nawaz Sharif.

Merkel said Germany’s KfW state development bank was already involved in projects in Pakistan, including hydropower plants, but added that the security situation was sometimes a deterrent.

capacity of about 4-5,000 megawatts of electricity,” he said adding that it would increase further in the longer term.



Nawaz said German firms, some of them world leaders in renewable energy technology thanks to the country’s shift to green energy and away from nuclear power, were keen to invest.

He said Germany is Pakistan’s fourth-biggest trading partner, and the largest within the European Union.

Bilateral trade between the countries totalled about 1.9 billion euros last year – with Pakistan selling mainly textiles, leather goods and basmati rice to Germany while Germany exports predominantly chemical products, machines and vehicles to Pakistan.



“Pakistan offers the most investors-friendly climate when compared in the world today and the German businesses can benefit from it by participating in multiple sectors of our economy,” the premier said, adding that Pakistan’s energy sector in particular is lacking large investment.

Nawaz Sharif welcomed the decision of German government for establishing an Energy Forum in Lahore and also its decision to cooperate in water disaster management.

He said the scourge of terrorism continues to haunt the world, adding Pakistan was still paying a forbiddingly heavy price in fighting this menace.  The PM said both the countries have mutually agreed to further strengthen their ongoing engagement in the field of counter terrorism.

Germany has played an important role in the development of Pakistan’s social sector, he said, adding that both the countries have also decided to continue their collaboration in the field of higher education.

He said both the countries have rich culture and Pakistan greatly values the decision of German government to sponsor its archeological sites and to preserve Unesco heritage site at Makli.

He thanked Merkel and the German government for their consistent and sincere support to Pakistan and invited her to visit Pakistan.  “I am convinced that the future holds great promise for further consolidating our bilateral relations,” he said.

He said rapidly transforming global scenario poses serious challenges as well as exciting opportunities.   “I believe in the concept of a peaceful neighbourhood while promoting cooperation, co-existence and connectivity,” he added.

Earlier, when Prime Minister Nawaz Sharif arrived at the Chancellor House, he was received personally by the German chancellor.  At the welcome ceremony, national anthems of both the countries were played and the PM was presented a guard of honour.

 

Published in The Express Tribune, November 12^th, 2014.