Germany to give Rs50bn for development

ISLAMABAD: Germany has agreed to provide over €163 million (Rs50.87 billion) to Pakistan for the execution of various development projects.

An official statement by Economic Affairs Division (EAD) on Tuesday said that government-to-government (G2G) negotiations between the Islamic Republic of Pakistan and the Federal Republic of Germany were held on May 8 and 9, 2023, in Berlin. The negotiations were inaugurated by Sardar Ayaz Sadiq, the Federal Minster for Economic Affairs of Pakistan and Niels Annen, Parliamentary State Secretary for the Federal Ministry of Economic Cooperation and Development (BMZ), Germany. The negotiations were then co-chaired by Dr Kazim Niaz, Secretary of Economic Affairs of Pakistan, and Helmut Fischer, Head of Pakistan and Afghanistan Division in BMZ.

During negotiations, development projects worth €163 million were agreed to be funded by the German government in Pakistan. The projects include the main sectors of the economy and socio-economic development, i.e., climate, social protection, health, water and irrigation, TVET, as well as human development.

In the inaugural statement, Annen stated that both Pakistan and Germany enjoy cordial relations based on a very strong and stable development cooperation history over the last six decades. He underscored that Germany sees Pakistan as a very important strategic bilateral partner from the perspective of development cooperation and other spheres of mutual interest. He assured that his country is committed to aligning the development interventions by BMZ with Pakistan’s development strategy, the 2030 agenda, and the sustainable development goals.

Sardar Ayaz Sadiq, in his statement, appreciated the development assistance extended by the German government for the socio-economic development of Pakistan during the last more than 60 years and the much-needed support provided by the German government during the 2022 floods.

Dr Niaz and Fischer, in their statements, reiterated their commitment to close cooperation and robust engagement between the Ministry of Economic Affairs, Pakistan, and BMZ Germany for efficient implementation of development projects to achieve the desired results. It was agreed that the next round of G2G negations will be held in Pakistan in 2025.