Denmark, through Danida Sustainable Infrastructure Finance (DSIF) and Danske Bank, has partnered with the Government of Pakistan to finance a €183 million wastewater treatment plant in Faisalabad. The financing package stands out because the loan component is provided interest-free, while Danish cash grants and support together cover more than 35 percent of the project cost.
The planned facility will treat 33 million gallons of wastewater every day, a capacity that will reduce contamination of local waterways, lower health risks for communities, and boost urban resilience. The Faisalabad wastewater project is expected to make a measurable difference to environmental protection and public health in the city and surrounding areas.
Danish firms will not only construct the plant but will also provide operation and maintenance support for three years after completion, bringing world-class expertise and structured knowledge-sharing to local teams. This hands-on cooperation aims to build technical capacity, improve operational standards, and strengthen people-to-people ties between Denmark and Pakistan.
As a flagship Danish-Pakistani collaboration, the initiative highlights how targeted finance, grants and international technical partnerships can drive sustainable urban growth and green infrastructure. Once operational, the Faisalabad wastewater facility will serve as an example of climate-sensitive investment with direct benefits for citizens and municipal services.
