Officials say the funding will help develop clean electricity by using the abundant water resources available in these mountainous areas.

The agreement was signed by Muhammad Humair Karim, Secretary of Pakistan’s Economic Affairs Division, and Sebastian Jacobi, Country Director of the German Government Bank for Development, “KfW.”

Under the agreement, KfW will provide financial assistance to the Government of Pakistan to support the development of clean and renewable electricity. Authorities said the project will focus on improving energy access in remote northern areas, where electricity shortages often affect daily life.

Officials believe the initiative will also help improve living standards and economic opportunities for local communities. Speaking at the signing ceremony, Muhammad Humair Karim thanked the German government for its continued support.

He said the grant would help Pakistan meet growing energy demands while also promoting environmentally friendly energy solutions.

Karim said such initiatives are important because they directly benefit ordinary citizens and contribute to sustainable development.

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He added that the Government of Pakistan values the German government’s support and hopes to further strengthen cooperation on future development projects.

Sebastian Jacobi, Country Director of KfW, also spoke at the ceremony. He said the grant will help people in northern areas gain access to green and sustainable energy.

Jacobi added that improved energy supply could also support economic growth in the region. He said better electricity access may help create jobs and encourage tourism activities in the scenic northern areas.

Officials believe the project will play a key role in expanding renewable energy and reducing dependence on traditional power sources.