ISLAMABAD — Pakistan and Germany have signed a grant agreement worth €18 million to promote hydropower and renewable energy projects in the country’s northern areas, aiming to support sustainable development and improve access to clean electricity.
The agreement was signed by Muhammad Humair Karim, Secretary of the Economic Affairs Division of Pakistan, and Sebastian Jacobi, Country Director of the KfW Development Bank, representing the Germany government.
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Under the agreement, KfW will provide grant assistance to the Government of Pakistan to support the development of clean and renewable electricity by utilising the region’s abundant water resources. The initiative focuses on expanding hydropower capacity and promoting sustainable energy solutions in remote northern areas where access to reliable electricity remains limited.
Germany and Pakistan strengthen clean energy cooperation 🌱 €18M grant agreement signed between @KfW_Islamabad & @economic affairs secretary to promote #hydropower & renewable energy in northern Pakistan supporting green electricity, jobs, livelihoods and sustainable growth. ⚡ pic.twitter.com/uYYFtXdbIO
— Ina Lepel (@GermanyinPAK) March 13, 2026
Officials said the programme is expected to improve living standards for local communities by ensuring a stable and environmentally friendly power supply. Access to renewable energy is also likely to support economic development in the region.
Speaking at the signing ceremony, Muhammad Humair Karim expressed appreciation for Germany’s continued support, noting that the grant would help address growing energy demands while promoting environmentally sustainable solutions.
He said such initiatives are commendable because they directly impact the lives of ordinary citizens, particularly in underserved regions. Karim added that Pakistan values Germany’s support in investing in development projects and looks forward to further strengthening bilateral cooperation in the future.
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Meanwhile, Sebastian Jacobi said the grant would help expand access to green and sustainable energy for residents of northern Pakistan. He noted that improved energy infrastructure could also contribute to socio-economic uplift, job creation and increased tourism in the region.
Officials believe the initiative will play an important role in promoting renewable energy while supporting long-term economic development in Pakistan’s mountainous northern areas.