Germany has pledged over $131 million in new development assistance to support climate resilience and energy transition initiatives in Pakistan.

The commitment was made during the latest round of bilateral development cooperation talks held in Islamabad, signaling a renewed partnership between the two countries in tackling climate and sustainability challenges.

According to the agreement, the €114 million (approximately $131.2 million) package will combine both financial and technical support and will be implemented during the current fiscal year.

Officials from both sides emphasized that the funding will help Pakistan strengthen its renewable energy infrastructure, enhance environmental governance, and improve energy efficiency in both urban and rural areas.

The German delegation reaffirmed its commitment to working closely with Pakistan in advancing green transformation goals, including sustainable water management, renewable energy generation, and climate-smart agriculture.

German representatives noted that the collaboration aims to reduce Pakistan’s dependency on fossil fuels, accelerate the country’s transition toward clean energy, and contribute to global climate mitigation efforts.

Pakistani officials welcomed the pledge, describing it as a timely contribution to national efforts toward climate adaptation and economic sustainability, particularly in the wake of the devastating 2022 floods that underscored the country’s climate vulnerability.

Development experts say the partnership reflects Germany’s ongoing role as a key ally in Pakistan’s renewable energy and environmental protection sectors, following previous initiatives in solar energy, wind power, and hydropower development.

The new funding package is also expected to complement Pakistan’s broader Green Economic Transition Framework, which focuses on sustainable growth, job creation, and energy sector reform.