ISLAMABAD: Pakistan has secured a major boost for its renewable energy sector after the German Government Bank for Development committed €18 million in grant funding to support hydropower and clean energy projects in the country’s northern regions.

The grant agreement was signed between Economic Affairs Division Secretary Muhammad Humair Karim and KfW Country Director Sebastian Jacobi during a ceremony in Islamabad. The funding aims to accelerate the development of environmentally friendly electricity generation by utilising the region’s abundant water resources.

Officials said the initiative will help expand access to clean and sustainable electricity in northern areas where communities often face energy shortages. By promoting hydropower and renewable energy solutions, the programme is expected to improve living standards, strengthen local economies and support sustainable development across the mountainous region.

Speaking on the occasion, Humair Karim expressed gratitude to the German government for its continued financial and technical support. He said the grant would help address the growing energy demand in northern Pakistan while ensuring that power generation remains environmentally responsible and sustainable.

Karim noted that projects focused on renewable energy have a direct impact on the lives of ordinary citizens by improving access to electricity and enabling economic opportunities. He added that Pakistan values its development partnership with Germany and looks forward to expanding cooperation in future climate friendly and energy initiatives.

Sebastian Jacobi said the grant would enable communities in the northern areas to benefit from green and reliable electricity while also supporting socio economic progress. He added that improved energy access will encourage tourism growth, create employment opportunities and contribute to long term development in the region.