ISLAMABAD: Pakistan’s Ministry of Economic Affairs and Germany’s KfW Development Bank signed a finance agreement for Phase 1 of the Billion Tree Afforestation Support Program on Friday. According to an EAD statement, the deal was signed in Islamabad by Secretary Economic Affairs Division Mian Asad Hayaud Din and Country Director, KfW Sebastian Jacobi.
The German government will pay a grant of Euro 13.5 million to the Pakistani government through the KfW Development Bank.
The initiative will result in a cleaner, greener environment by reducing carbon emissions and will also assist local populations socioeconomically.
Sebastian Jacobi, CD KfW, mentioned during his speech that KfW is actively helping the government of Pakistan in the Energy and Climate Sector with an active portfolio of over Euro 300 million.
KfW has funded the construction and renovation of three hydropower projects, as well as the construction of power substations, the installation of micro-hydel power plants, and micro-financing for solarization of off-grid houses.
These activities will have a long-term positive influence on the lives of worthy people in the country while also assisting in the mitigation of climate change threats.
Mian Asad Hayaud Din, Secretary, Economic Affairs Division, thanked the German government for supporting the government of Pakistan’s flagship initiative.
He went on to say that Pakistan’s government has set lofty goals for mitigating the effects of climate change. Germany’s ongoing support is particularly noteworthy in this regard. These investments will ensure that future generations have a better and healthier future.
The German government is also considering contributing an additional Euro 20 million for the project’s next phase.
Together, these investments will result in government entities managing forests sustainably and creating jobs, particularly for women and youth. The signing of this agreement coincides with the 60th anniversary of the two countries’ development partnership.