Pakistan, Germany sign €129 million worth of financial cooperation deal
Pakistan, Germany sign €129 million worth of financial cooperation deal

ISLAMABAD: Pakistan and Germany on Tuesday signed a financial cooperation agreement worth €129 million.

Federal Minister for Economic Affairs Omar Ayub Khan witnessed the signing of agreement between the Ministry of Economic Affairs, Pakistan and the Federal Ministry for Economic Cooperation and Development, Germany.

The minister appreciated the German’s enhanced bilateral economic cooperation with Pakistan and expressed the two countries are longstanding development partners and congratulated both sides on completing 60 years of development cooperation.

The biennial negotiations on the development cooperation between the two governments were also held in the Economic Affairs Division, Islamabad.

The Pakistani delegation was headed by Mian Asad Hayaud Din, secretary, Economic Affairs Division and included representatives of the Ministry of Foreign Affairs, Ministry of Finance, Federal Board of Revenue and relevant provincial governments.

The German delegation was headed by Gisela Hammerschmidt, commissioner for Asia at the Federal Ministry for Economic Cooperation and Development and included participants from the German Foreign Office, KfW, GIZ and BGR. The two sides took stock of the existing development cooperation and expressed satisfaction at the trajectory of cooperation in different areas since 1961.

As a result of the negotiations, Germany committed €129 million for the future German development cooperation in Pakistan in addition to the ongoing portfolio.

During the current talks, both sides underlined the importance of close cooperation and partnership. The German ministry committed new funding in three sectors, good governance, climate and energy and Training and sustainable growth.

The new financing will be allocated to different projects, including digital governance Pakistan, social protection, promotion of startups in Pakistan, promotion of solar energy, self-employment of women in the private health sector, and development of hydropower and renewable energy.

The Pakistani delegation briefed the German counterparts about the ongoing policy reforms and initiatives and future development priorities of the government, which include a stronger focus on transparency, institutional reforms, poverty alleviation and social protection, human resource development, climate change and green energy.

Both sides also exchanged views on increasing the cost effectiveness of the development assistance initiatives and the measures to enhance cooperation with the private sector.

The Pakistani side extended an invitation to the German delegation to visit Pakistan in the near future, which was accepted by the German side.

Omar Ayub Khan reaffirmed his appreciation for the strategic bilateral cooperation with Germany.

While acknowledging the formidable socioeconomic security and governance challenges it faces, he reiterated its commitment to transform these into opportunities and build upon them for the benefit of the nation.

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