Pakistan asks Germany to revise bilateral agreement
Dar says changes required in 1972 pact after legislative, economic developments on both sides
ISLAMABAD – Federal Minister for Finance and Economic Affairs Senator Mohammad Ishaq Dar received German Deputy Minister for Economic Cooperation Thomas Silberhorn here on Wednesday.
Silberhorn referred to the upcoming Pak-German bilateral negotiations to be held in Berlin from October 28 and 30th and hoped they would further expand bilateral cooperation. He apprised Senator Dar about the financing agreements between Economic Affairs Division of Pakistan and KFW of Germany on economic cooperation.
He said that this was an example of Germany’s continued support to Pakistan for development in different sectors. Welcoming the deputy minister, Senator Dar acknowledged the increase in German development and economic assistance over the past few years. He reiterated the engagement with Germany in energy, health, governance and education.
He said Pakistan would also like to expand its cooperation with Germany in the spheres of trade, science and technology, automobile industry, manufacturing and renewable energy projects. He also called upon the German side for revisiting the bilateral agreement between the government of Pakistan and Federal Republic of Germany which was signed in 1972.
He said as a result of subsequent legislative and economic developments on both sides, relevant changes were required in the agreement which may be discussed during the upcoming bilateral negotiations. The German deputy minister said that the bilateral development cooperation between Pakistan and Germany commenced as early as 1961.
Pakistan was the first country to avail economic assistance from Germany in that year. The two sides celebrated the 50th anniversary of development cooperation in 2011. Germany is providing financial assistance through KFW and technical assistance through GIZ. He appreciated Pakistan’s structural reform efforts and achievement of economic stability.
– Pakistan Microfinance Investment Company –
Silberhorn also invited Senator Dar’s attention to the ADB Board of Governors meeting being held in Frankfurt in May next year. “We would be eager to see you participate in the meeting,” he said. Dar said that he would attend the meeting. On this occasion, both the sides agreed in principle on establishment of the Pakistan Microfinance Investment Company which is jointly funded by KFW Germany, DFID UK and the Pakistan Poverty Alleviation Fund and aims to further strengthen and develop the microfinance sector in Pakistan.
An agreement signing ceremony followed the meeting in which three financing agreements for German development cooperation to Pakistan were signed. These include (i) 10 million Euro grant agreement for the reintegration and rehabilitation for temporarily displaced persons in Federally Administered Tribal Areas (FATA) (ii) 10 million Euro grant agreement for the regional infrastructure fund for Pakhtunkhwa and 40 million Euro loan agreement for the rehabilitation of Warsak Hydropower plant.
The project – Reintegration and Rehabilitation for Temporarily Displaced Persons in FATA – aims to support the return of the TDPs to the tribal areas and to contribute to the rehabilitation of the affected areas. The project – Regional Infrastructure Fund in Khyber Pakhtunkhwa – aims to strengthen the implementation capacities of the district administration and to enhance participation of the population in the decision-making process at district level.
The Warsak Dam rehabilitation project aims at the rehabilitation of 55 years old hydropower project for restoring its power generation capacity to 243 megawatts from 180 megawatts. Finance Secretary Dr Waqar Masood Khan, EAD Secretary Saleem Sethi and senior officials of the Ministry of Finance and Economic Affairs Division attended the meeting.
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