Islamabad: Pakistan and the German Government Bank for Development, KfW, have entered into an 18 million euros grant agreement to advance hydropower and renewable energy in the northern regions of Pakistan. The initiative aims to harness the area’s water resources to generate sustainable electricity, enhancing the living standards and livelihoods of local communities.

According to Radio Pakistan, the agreement was signed by Muhammad Humair Karim, Secretary of the Economic Affairs Division, and Sebastian Jacobi, KfW’s Country Director. The grant is intended to support the production of clean energy, a crucial step towards meeting the country’s increasing energy demands through environmentally sustainable methods.

During the signing ceremony, the Secretary of Economic Affairs expressed gratitude to the German government for its support. He emphasized that the project would have a positive impact on local communities by offering clean energy solutions. KfW’s Country Director highlighted that the initiative is expected to increase access to sustainable energy in the northern areas, fostering socio-economic growth, job creation, and the promotion of tourism.