Germany has agreed to provide €18 million in grant funding to support renewable energy projects in the northern regions of Pakistan. The agreement aims to improve access to clean electricity in remote mountain communities and promote sustainable development.
The funding will be provided through KfW Development Bank, a German government owned development bank that finances projects around the world. The program will mainly support small hydropower plants and other renewable energy systems in the northern areas, including parts of Gilgit-Baltistan and Chitral.
These regions have strong natural potential for hydropower because of their rivers and mountain streams. However, many villages still face electricity shortages, especially during winter months. The new funding will help use local water resources to produce reliable and clean energy.
Officials from both countries said the project will also improve daily life for residents. Better electricity supply can support schools, hospitals, and small businesses in remote areas. It may also create new job opportunities during construction and maintenance of the energy projects.
Another goal of the initiative is to support tourism in the region. Northern Pakistan is known for its natural beauty and attracts visitors from around the world. A stable power supply can help hotels, guesthouses, and other tourism services operate more effectively.
Both Pakistan and Germany said they plan to continue working together on green energy and long term sustainable development.
