Pakistan and Germany have signed a grant agreement worth €18 million to support Hydropower and renewable energy projects in Pakistan’s northern regions. The agreement aims to promote clean energy and improve electricity supply in remote areas.
The deal was signed by Muhammad Humair Karim, Secretary of Pakistan’s Economic Affairs Division, and Sebastian Jacobi, Country Director of the German Development Bank (KfW). The signing ceremony highlighted the growing cooperation between the two countries in sustainable energy development.
Under the agreement, KfW will provide financial support to help Pakistan expand Hydropower and renewable energy initiatives. The funding will focus mainly on northern areas where water resources are abundant but electricity access remains limited.
Officials said the project will help Pakistan make better use of its natural water resources. Hydropower is considered one of the most reliable sources of renewable electricity. It also produces very low carbon emissions compared to fossil fuels.
Pakistan has long relied on imported fuels to meet its energy needs. This has increased costs and created pressure on the national economy. Expanding Hydropower projects could help reduce energy shortages and lower dependence on imported energy.
Government representatives said the initiative will also benefit local communities. New energy projects are expected to improve access to electricity in rural areas. This can support education, healthcare services, and small businesses in the region.
At the ceremony, Secretary Muhammad Humair Karim thanked the German government for its continued support. He said environmentally friendly energy programs bring real benefits to ordinary people. Clean energy projects also contribute to long-term economic stability.
German officials also emphasized the importance of sustainable energy cooperation. They noted that Pakistan has strong potential for renewable power generation. With international support, the country can expand Hydropower and other green energy solutions.
The new agreement reflects the long-standing partnership between Pakistan and Germany in development cooperation. Both countries have worked together on several energy and infrastructure projects in the past.
Experts say increasing Hydropower capacity could play an important role in Pakistan’s future energy strategy. Renewable energy sources can help reduce power shortages and support sustainable development.
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The €18 million grant is expected to strengthen ongoing efforts to expand renewable electricity production in Pakistan’s northern regions. Officials hope the project will improve energy access while promoting environmentally responsible development.
