ISLAMABAD: Pakistan and Germany, on Friday, finalized the bi-annual government to government negotiations for the year 2013 and signed a EUR 102.5 million agreement.
The agreement is aimed at executing various new and existing projects in education, energy, governance and health sectors.
After gaining approval by the Federal Cabinet, the agreement was signed by Secretary Economic Affairs Division (EAD), Nargis Sethi, and Director General Europe Middle East and Asia; Multilateral Development Policy of the German Federal Ministry for Economic Cooperation and Development, Dr. Uta Boellhoff.
In an official press statement issued by the EAD, it was stated that the agreement focused on the provinces of Khyber Pakhtunkhwa (KP) and the Federally Administered Tribal Areas (FATA)
It added that in addition to development in the above mentioned provinces, selected national programs and projects focusing on the metropolitan areas of and around Lahore and Karachi are in implementation.
So far, German Development Assistance to Pakistan has contributed more than EUR 2.5 billion since 1961.
Secretary EAD said that the agreement would enhance the efforts of federal and provincial governments in Pakistan in the fields of governance, basic education, basic health and renewable energy.
Dr. B’llhoff said that “This German commitment is an expression of the German support to bring forward crucial reforms by the new government, especially in the energy sector and towards reforms of the tax system.”
The funding is also in support of the reforms agreed upon as part of the Extended Fund Facility approved on September 4th by the Executive Board of the International Monetary Fund (IMF).
Co-funded by the Dutch government and the European Union to support the implementation of the national TVET Reform, this agreement will be used to strengthen the existing support for Vocational Education and Training (TVET).
In the health sector, additional funding will be provided on both federal and provincial levels in order to enhance Human Resource Development and the implementation of social security systems.
Moreover, projects to improve energy supply for the national grid, decentralized rural energy solutions as well as energy efficiency projects with the industries rich with job opportunities, have also received additional funding.
According to the statement, the financial support to Afghan refugees and refugee hosting areas implemented through UNHCR will also be upgraded.