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Pakistan, Germany expand energy cooperation with €9.5m grants

Pakistan and Germany have deepened cooperation in the energy sector with ongoing grant programmes worth €9.5 million aimed at digitization, renewable integration, and pilot projects, as Federal Minister for Energy Sardar Awais Ahmad Khan Leghari reaffirmed the government’s commitment to modernizing the power system.

During a meeting with a delegation of the German Development Agency (GIZ), led by Deputy Head of Mission Mr. Arno Kirchhof, discussions focused on decarbonization and digitization of power distribution networks. The German side informed that a €7 million technical assistance programme, launched in 2024 and continuing until 2026, is supporting Pakistan’s Ministry of Energy through regulatory reforms, renewable energy integration, pilot project implementation, and knowledge sharing.

In addition, a €2.5 million grant has been approved for Battery Energy Storage Systems (BESS), under which pilot projects and business models will be developed in collaboration with the ministry. Pilot initiatives to digitize two feeders in PESCO and LESCO are already under implementation.

Leghari emphasized that modernization of the energy sector was a vital national priority. “Our aim is not only to overcome current challenges but to lay the foundation of a sustainable, transparent, and modern energy system,” he said. He added that a comprehensive research and development plan was being prepared to align future energy policy with global best practices and modern technologies.

The minister appreciated Germany’s support, noting that Pakistan sought to further strengthen partnerships with international allies to enhance research, capacity building, and policy reforms.

The German delegation commended Pakistan’s reform efforts and assured continued GIZ support to make the country’s energy sector more modern and environmentally sustainable.


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