ISLAMABAD: Germany on Friday signed a €22.4 loan agreement with Pakistan to support the wide-ranging energy and financial sectors projects, a government statement said.
… an agreement under the Pakistan-Germany Development Programme (is singed) for financial assistance worth €22.4 million to support existing projects in the area of renewable energies, better grid connections and improved access to financial services through microfinance initiative with Pakistan Microfinance Investment Company (PMIC),” the statement said.
Noor Ahmed, secretary, economic affairs division and Jens Jokisch, the charge’ d’ affaires of the German Embassy, signed the agreement. Muhammad Hammad Azhar, federal minister for economic affairs witnessed the signing ceremony of the financial agreement (FC) which also includes support for social health protection schemes in Khyber Pakhtunkhwa and Gilgit-Baltistan.
The loan would provide health insurance to underprivileged masses and investments for polio eradication in collaboration with ministry of National Health Services, regulation and coordination.
The statement said development cooperation between Pakistan and the Germany dates back to 1961, “with the funding volume to date totaling more than €3 billion”.
“The contracting parties underlined the good relations between Germany and Pakistan and looked forward to strengthening their cooperation,” the statement said.
“Both sides look forward to having meaningful deliberations in the upcoming government-to-government negotiations in Berlin in 2019 to commit funds for future projects and proposals.
Minister Azhar thanked the German government for the grant assistance geared towards the betterment of Pakistan.
The financial assistance from Germany will support key priority sectors of the government like renewable energy, social health protection and access to financial services,” the minister said.
He said Pakistan honours and appreciates financial cooperation from the Germany and looks forward to strengthen bilateral relations in future specifically after the government-to-government negotiations due in September.