Pakistan has secured a concessional loan from Denmark’s Danida Sustainable Infrastructure Finance (DSIF) for the construction of the Eastern Wastewater Treatment Plant (33 MGD) in Faisalabad, marking the first loan agreement under the Pakistan-Denmark Framework Agreement signed in 2022.
“The Government of Pakistan and the DSIF, Denmark, have signed a concessional loan agreement for the project titled ‘construction of Eastern Wastewater Treatment Plant (33 MGD) of Faisalabad City Phase-I'”, read a statement.
The agreement was signed by Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, Tina Kullerup Hausen, Managing Director, DSIF, and Jesper B. Petterson, Managing Director, Danske Bank. The project is particularly significant as it represents the first intervention by Danida in Pakistan’s development sector after a long hiatus. Moreover, it is the first loan signed under the Pakistan-Denmark Framework Agreement, concluded in 2022.
According to the statement, the project will contribute to sustainable urban development by improving wastewater treatment facilities in Faisalabad, thereby supporting environmental protection, public health, and resilient urban infrastructure.