Pakistan and Germany on Thursday signed a Technical Cooperation Agreement worth €40.5 million to fund nine development projects across key sectors.

The agreement focuses on strengthening cooperation in areas such as climate resilience, social protection, and renewable energy, according to an official statement.

Under the arrangement, the German development bank KfW will provide financial and technical assistance for the implementation of nine new projects in Pakistan.

The agreement was signed by Secretary Economic Affairs Muhammad Humair Karim Kidwai and German Ambassador to Pakistan Ina Lepel at a ceremony attended by officials from the Ministry of Economic Affairs and representatives of the German Embassy.

Speaking on the occasion, Kidwai thanked the German government and KfW for their continued support in Pakistan’s socio-economic development, noting that the partnership between the two countries has remained strong since 1961, based on mutual trust and cooperation.

He added that Germany remains one of Pakistan’s key development partners, with a current active portfolio of around €550 million.

German Ambassador Ina Lepel said Germany highly values its long-standing partnership with Pakistan and remains committed to supporting initiatives that promote sustainable and inclusive development.

She said the new agreement reflects a shared commitment to addressing global challenges, including climate change, energy transition, and social vulnerability through practical cooperation.

The ambassador expressed confidence that the projects under the agreement would deliver tangible benefits to communities across Pakistan while further strengthening bilateral relations.