KP, Fata and Balochistan uplift: Euro 76.43 million pact to be inked with Germany

Pakistan and Germany are to sign Financial Cooperation Agreement (FCA) worth euro 76.43 million to be spent in KP, Fata and Balochistan. Official sources told Business that development cooperation between Pakistan and Germany began in 1961, and bilateral consultations followed by negotiations are regular ongoing activities between the two countries.
Bilateral negotiations with the German side result in financial assistance commitments which mark the initiation of activities for mutually agreed projects. The Financial Cooperation Agreement (FCA) 2015 is an umbrella document that specifies the financial commitments (Loan) made in the bilateral negotiations held in October 2015 between the two sides.
According to sources, to formalize the financial commitments made by Germany during Pak-German Bilateral Negotiations held on October 20, 2015, the German side shared the draft FCA 2015 worth Euro 76.43 million (loan) for interventions including financial contribution for multi-donor trust fund for KPK, FATA and Balochistan, livelihood support and community infrastructure projects, social health and infrastructure projects, reintegration and rehabilitation programme for IDPS and promotion of renewable energy.
The terms of loan include interest rate of 0.75% and 0.25% as commitment charges with a ten year grace period, repayable in forty years. The draft FCA was circulated among various stakeholders including Ministry of Finance, Planning & Development Division, and Provincial Planning & Development Division for their comments and concurrence.
The source said all stakeholders have concurred with the Financial Cooperation Agreement 2015. Law Division has also vetted the draft agreement on March 20, 2017. The Economic Affairs Division recently submitted a summary to the federal Cabinet and proposed that FCA 2015 may be signed with Germany. The Cabinet has also accorded approval to the summary for signing of FCA with Germany.