Germany Pledges $131 Million for Climate and Energy Reforms in Pakistan

Germany has pledged more than USD 131 million in new development assistance for boosting climate and energy transition in Pakistan. The commitment was made during bilateral development cooperation talks held in Islamabad. The €114 million package ($131.2 million) combines financial and technical support and will be utilized during the current fiscal year. The discussions were co-chaired by Muhammad Humair Karim, Secretary at the Ministry of Economic Affairs, and Christine Toetzke, Director-General at Germany’s Federal Ministry for Economic Cooperation and Development (BMZ). Senior officials and ambassadors from both sides attended the negotiations. Officials said the assistance will support Pakistan’s shift toward renewable energy, strengthen social protection programs, and create employment opportunities. The Pakistani side emphasized the need for continued alignment with the government’s economic transformation plan, known as URAAN Pakistan. Christine Toetzke acknowledged Pakistan’s recent economic reforms and reaffirmed Germany’s intent to assist the country in managing climate challenges and advancing inclusive development. At the end of the session, both sides signed the Summary Record, formalizing the commitments. The next round of bilateral development cooperation talks will take place in Berlin in 2027.