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 project marks a significant step for Faisalabad wastewater management and urban infrastructure.
The new facility will have the capacity to treat 33 million gallons of wastewater each day, directly protecting the environment, improving public health and strengthening urban resilience in one of Pakistan’s major industrial cities. Effective treatment at this scale will reduce pollution risks and support cleaner waterways for local communities.
What sets this financing apart is that the loan is provided entirely interest-free for Pakistan. Total Danish support, including cash grants, accounts for more than 35% of the project financing, underlining Denmark’s commitment to sustainable development cooperation in Pakistan.
Danish companies will not only construct the plant but will also provide operation and maintenance support for three years after completion, bringing world-class expertise and sustained knowledge-sharing. This partnership is designed to ensure smooth startup and transfer practical operational skills to local managers and staff, fostering stronger people-to-people ties between Denmark and Pakistan.
The Faisalabad wastewater project aims to become a flagship example of Danish-Pakistani collaboration, demonstrating how targeted finance and technical cooperation can drive sustainable urban growth and green infrastructure in Pakistan’s rapidly growing cities.
