Germany to provide €13.5 million for afforestation Programme

ISLAMABAD: The Ministry of Economic Affairs and German bank signed a financing agreement for Phase-1 of billion tree afforestation support programme, a statement said on Friday.

The Country Director of KfW Development Bank, Sebastian Jacobi and Secretary Economic Affairs Division, Mian Asad Hayaud Din signed the agreement in Islamabad, it added.

Germany will provide a grant of €13.5 million to the government for the project through the KfW Development Bank.

Country Director of KfW, Sebastian Jacobi said that KfW is actively supporting the Government of Pakistan in the energy and climate sector with an active portfolio of more than €300 million.

KfW has provided funding for construction and rehabilitation of three hydropower projects, construction of power substations, installation of micro-hydel power plants, and also providing micro-financing for solarisation of the homes in off-grid areas, he added.

Jacobi stated that these efforts will result in bringing sustainable and lasting positive impact in the lives of the deserving communities in the country and help mitigate the risks of climate change.

Secretary Economic Affairs Division Mian Asad Hayaud Din expressed gratitude to the Government of Germany for supporting the flagship project of Pakistan, further highlighting that the government has set ambitious targets to mitigate the impact of climate change.

In this regard, continued support of Germany is highly commendable. These investments will lead to a better and healthy future for the generations to come, he added.

With the funds provided by Germany, KfW will support the efforts of the government to reduce the impacts of climate change by planting 10 billion trees, introducing best practices on native and invasive plant species, training on fire-fighting techniques and provision of equipment, and women and youth engagement and empowerment.

The project will result in a clean and green environment through reduction in carbon emissions and also bring about socioeconomic benefits to the local communities.

The Government of Germany is also considering providing another €20 million for the next phase of the project. Together, these investments will result in sustainable forest management by the government institutions and create jobs especially for women and youth.