Germany and Pakistan have reinforced cooperation on green energy with the signing of an €18 million grant agreement between KfW Islamabad and the economic affairs secretary to support hydropower and renewable energy projects in northern Pakistan.
The funding is aimed at expanding clean electricity generation and strengthening local capacity for renewable energy development. Officials said the grant will focus on practical measures that encourage hydropower development alongside other renewables, helping to diversify Pakistan’s energy mix while reducing environmental impacts.
Beyond power supply, the initiative is expected to bolster employment and livelihoods in northern communities by creating work opportunities tied to construction, operations and maintenance of renewable facilities. Local planners view the support as a step toward sustainable growth that ties energy access to socio-economic benefits.
KfW Islamabad and Pakistani economic authorities will coordinate implementation to ensure the grant translates into measurable improvements in green electricity availability and community resilience. The partnership underscores a shared commitment to accelerating Pakistan’s transition to green energy while supporting jobs and long-term development in the region.
