Germany signs €71 million deal with Pakistan to uplift renewable energy sector, assist flood-hit people

Internally displaced flood-affected people sit in their makeshift shelter in a flood-hit area following heavy rains in Dera Allah Yar town of Jaffarabad district in Balochistan province, Pakistan, on September 7, 2022. (AFP)
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Updated 29 December 2022
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Germany signs €71 million deal with Pakistan to uplift renewable energy sector, assist flood-hit people

  • Under agreement,  €46.2 have been allocated for construction of a 500-kilovolt grid station in Chakwal
  • Germany allocates €25 to support people displaced by recent floods, which affected 33 million people

ISLAMABAD: Pakistan and Germany on Thursday signed a €71 million agreement to improve power supply in parts of the South Asian country, and to support people displaced by devastating floods this summer, Berlin's envoy to Islamabad said.

The deal was brokered with the help of Germany’s KfW Development Bank, which closely cooperates with European Union institutions on behalf of the German Federal Government to increase the effectiveness of European development cooperation (DC).

Under the deal, which the German bank signed with the Pakistani government’s Economic Affairs Divison and the National Transmission and Despatch Company Limited (NTDC), €46.2 have been allocated for the construction of a 500-kilovolt grid station in Chakwal, a city in Rawalpindi division of the eastern province of Punjab.

Once constructed, the grid station would improve power supply not only to the industrial sector in Punjab but also to electric supply companies in Islamabad and Faisalabad.

Alfred Grannas, the German Ambassador to Pakistan, announced in a Twitter post on Thursday morning:

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He said out of the total of €71 million, €25 would be allocated to alleviate the condition of people displaced by recent floods, which claimed more than 1,700 lives, affected 33 million people, and incurred losses worth $30 billion, according to government estimates.

Grannas said Germany would also provide Pakistan an additional sum of €16.5 million to invest in solar energy projects to tackle climate change.

According to KfW’s Development Bank’s website, in line with the agreements signed between Pakistan and Germany to uplift the renewable energy sector, the bank co-funded both of Pakistan's main hydropower projects in Tarbela and Ghazi Barotha.


Imran Khan’s party shutdown draws mixed response; government calls it ‘ineffective’

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Imran Khan’s party shutdown draws mixed response; government calls it ‘ineffective’

  • Ex-PM Khan’s PTI party had called for a ‘shutter-down strike’ to protest Feb. 8, 2024 general election results
  • While businesses reportedly remained closed in Khyber Pakhtunkhwa, they continued as normal elsewhere

ISLAMABAD: A nationwide “shutter-down strike” called by former prime minister Imran Khan’s party drew a mixed response in Pakistan on Sunday, underscoring political polarization in the country two years after a controversial general election.

Khan’s Pakistan Tehreek-e-Insaf (PIT) opposition party had urged the masses to shut businesses across the country to protest alleged rigging on the second anniversary of the Feb. 8, 2024 general election.

Local media reported a majority of businesses remained closed in the Khyber Pakhtunkhwa (KP) province, governed by the PTI, while business continued as normal in other provinces as several trade associations distanced themselves from the strike call.

Arab News visited major markets in Islamabad’s G-6, G-9, I-8 and F-6 sectors, as well as commercial hubs in Rawalpindi, which largely remained operational on Sunday, a public holiday when shops, restaurants and malls typically remain open in Pakistan.

“Pakistan’s constitution says people will elect their representatives. But on 8th February 2024, people were barred from exercising their voting right freely,” Allama Raja Nasir Abbas Jafri, the PTI opposition leader in the Senate, said at a protest march near Islamabad’s iconic Faisal Mosque.

Millions of Pakistanis voted for national and provincial candidates during the Feb. 8, 2024 election, which was marred by a nationwide shutdown of cellphone networks and delayed results, leading to widespread allegations of election manipulation by the PTI and other opposition parties. The caretaker government at the time and the Election Commission of Pakistan (ECP) both rejected the allegations.

Khan’s PTI candidates contested the Feb. 8 elections as independents after the party was barred from the polls. They won the most seats but fell short of the majority needed to form a government, which was made by a smattering of rival political parties led by Prime Minister Shehbaz Sharif. The government insists the polling was conducted transparently and that Khan’s party was not denied a fair chance.

Authorities in the Pakistani capital deployed a heavy police contingent on the main road leading to the Faisal Mosque on Sunday. Despite police presence and the reported arrest of some PTI workers, Jafri led local PTI members and dozens of supporters who chanted slogans against the government at the march.

“We promise we will never forget 8th February,” Jafri said.

The PTI said its strike call was “successful” and shared videos on official social media accounts showing closed shops and markets in various parts of the country.

The government, however, dismissed the protest as “ineffective.”

“The public is fed up with protest politics and has strongly rejected PTI’s call,” Pakistan’s Information Minister Attaullah Tarar said on X.

“It’s Sunday, yet there is still hustle and bustle.”

Ajmal Baloch, All Pakistan Traders Association president, said they neither support such protest calls, nor prevent individuals from closing shops based on personal political affiliation.

“It’s a call from a political party and we do not close businesses on calls of any political party,” Baloch told Arab News.

“We only give calls of strike on issues related to traders.”

Khan was ousted from power in April 2022 after what is widely believed to be a falling out with the country’s powerful generals. The army denies it interferes in politics. Khan has been in prison since August 2023 and faces a slew of legal challenges that ruled him out of the Feb. 8 general elections and which he says are politically motivated to keep him and his party away from power.

In Jan. 2025, an accountability court convicted Khan and his wife in the £190 million Al-Qadir Trust land corruption case, sentencing him to 14 years and her to seven years after finding that the trust was used to acquire land and funds in exchange for alleged favors. The couple denies any wrongdoing.