Muhammad Humair Karim, Secretary for Ministry of Economic Affairs (front row-left) and German Ambassador to Pakistan, Ina Lapel, signing Technical Cooperation Agreement having worth 40.5 Million Euro in Islamabad on May 21, 2026. (PID)
- Germany is one of Pakistan’s key development partners, with the current active bilateral portfolio reaching around $638 million
- The agreement will address challenges such as climate change, energy transition, and social vulnerability through joint action
ISLAMABAD: Pakistan and Germany have signed a technical cooperation agreement worth €40.5 million ($47 million) for the implementation of nine projects in climate, energy and social protection sectors, the Pakistani information ministry said on Thursday.
Under the agreement, which aims to strengthen bilateral development cooperation in climate resilience, social protection and renewable energy, the German Development Bank, KfW, will provide financial and technical support for the launch of these projects across Pakistan.
Pakistan has identified climate resilience, clean energy transition and social protection as key priorities as it recovers from successive climate shocks, including the devastating 2022 floods that affected over 33 million people and floods last year that killed over 1,000 people and devastated millions of acres of farmland.
The technical cooperation agreement was signed by Pakistan’s Economic Affairs Secretary Muhammad Humair Karim Kidwai and German Ambassador to Pakistan Ina Lepel at a ceremony in Islamabad, according to the Pakistani information ministry.
“Pakistan and Germany have maintained a strong and enduring development partnership since 1961, built on mutual trust and cooperation,” Kidwai was quoted as saying by the ministry.
The official appreciated the German government and KfW’s continued support toward Pakistan’s socio-economic development, noting that Germany was one of Pakistan’s key development partners with the current active bilateral portfolio of 550 million euros ($638 million).
The German ambassador said her country valued its longstanding partnership with Pakistan and was committed to supporting initiatives that promote sustainable and inclusive development.
“The new agreement reflects the shared commitment of both countries to addressing global challenges such as climate change, energy transition, and social vulnerability through practical cooperation and joint action,” she was quoted as saying.
The ambassador expressed confidence that the projects launched under the agreement would deliver meaningful benefits to communities across Pakistan and further deepen the strong relations between the two countries.
In March this year, Berlin and Islamabad signed an €18 million ($20 million) agreement aimed at expanding hydropower and other renewable energy projects in northern Pakistan, according to the Pakistani information ministry.
The grant funding aimed to contribute to the provision of clean and green electricity in Pakistan’s northern areas through utilization of abundant water resources, improving living standards and livelihoods of the local population.
