Pakistan and Germany signed a Protocol on Development Co-operation under which Germany would provide 81 million Euro for various development projects in Pakistan in the fields of education, health, microfinance and poverty alleviation.
The Protocol was signed following bilateral economic negotiations on development co-operation between the two countries held in Berlin. Secretary, Economic Affairs Division Farrakh Qayyum led Pakistan's delegation while German's delegation was headed by Dr Friedrich Kitschelt, Director General for Asia and South-Eastern Europe Division of the German Ministry for Economic Co-operation. During discussions both sides reviewed the progress on current development projects in the field of education, health and energy being undertaken with German assistance.
The two sides also discussed potential fields to further deepen bilateral engagement particularly German assistance in the area of Technical and Vocational Training. An agreement was also signed providing for an additional assistance of 20 million Euro for Kyal Khwar Hydropower Project (Germany has already committed Euro 77 million for this project).
Both sides concluded a Debt Swap-IV Agreement according to which Germany would write off a loan of 20 million Euro and the amount would be utilised by Pakistan government in building infrastructure for schools in NWFP.
Germany would also provide Euro 7.5 million for improvement of health delivery system in Fata. The German side would also consider a proposal for establishment of a medical college and a teaching hospital in FATA at a cost of Euro 10 million.
Germany and Pakistan have a longstanding and co-operative relationship and development co-operation is an important aspect of these relations. Germany is expanding its development co-operation with Pakistan and the next round of bilateral economic negotiations would be held in Islamabad in April next year.