The Government of Pakistan and the Danida Sustainable Infrastructure Finance (DSIF) of Denmark have signed a concessional loan agreement for the “Construction of Eastern Wastewater Treatment Plant (33 MGD) of Faisalabad City Phase-I.” The agreement was signed by Ministry of Economic Affairs Secretary Muhammad Humair Karim, DSIF Managing Director Tina Kullerup Hausen, and Danske Bank Managing Director Jesper B. Petterson.
This project marks the first intervention by DSIF in Pakistan’s development sector after a long pause. It is also the first loan signed under the Pakistan–Denmark Framework Agreement, concluded in 2022. The initiative reflects a renewed commitment to strengthening bilateral cooperation for sustainable urban development.
The wastewater treatment plant will significantly enhance Faisalabad’s urban infrastructure by improving water treatment facilities. The project aims to support environmental protection, public health, and resilient urban services. By addressing wastewater challenges, it will help reduce pollution, ensure cleaner water, and provide long-term benefits to the city’s population.
Officials highlighted that collaboration with DSIF demonstrates Pakistan’s dedication to working with international development partners to meet pressing urban needs. The project is expected to serve as a model for future sustainable infrastructure initiatives, promoting both environmental sustainability and economic growth.
The Ministry of Economic Affairs emphasized that such partnerships are critical for advancing the country’s urban development goals. By combining local expertise with international financing and technical support, the Faisalabad wastewater project is set to improve living standards and enhance the city’s resilience against environmental challenges.
This agreement also underlines Denmark’s continued support for Pakistan’s development sector, showcasing a shared commitment to sustainable urban growth and regional cooperation.
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