Germany and Pakistan have taken a significant step to deepen hydropower cooperation with an €18 million grant agreement signed between KfW Islamabad and Pakistan’s economic affairs secretary. The funding is aimed at promoting hydropower and other renewable energy initiatives in northern Pakistan to expand access to green electricity.
The grant will support project preparation and capacity building to harness the region’s renewable potential. By focusing on hydropower cooperation, the initiative seeks to unlock cleaner energy sources while strengthening technical and institutional frameworks needed for sustainable projects.
Officials say the move is expected to create local employment opportunities and bolster livelihoods in mountain communities that stand to benefit from improved electricity supply. The partnership with KfW emphasises practical measures to ensure that renewable investments translate into tangible social and economic gains.
As hydropower cooperation between Germany and Pakistan progresses, the programme aims to contribute to longer-term sustainable growth by increasing green electricity generation, supporting local economies and reinforcing bilateral collaboration on climate-friendly development.
