Priority area: Energy

Duration: 1960s to today

Development cooperation between Pakistan and Germany in the priority area of energy began back in the 1960s. In view of the great potential of natural energy sources in Pakistan, no other sector has received more German development funds.

The energy sector in Pakistan still faces serious challenges. Energy supply, especially in rural areas, is inadequate; power shortages are one of the biggest obstacles to economic development. Germany supports Pakistan in achieving its goal of improving the supply of environmentally friendly energy and more efficient energy use.

The objective of German development cooperation with Pakistan in the priority area of energy is: The basic supply of renewable energy to the population and industry, and its financing, are improved, thus contributing towards sustainable economic growth.

This will be supported by energy sector reforms. Support for renewables (wind, solar, biomass) and energy efficiency approaches will be increased, and local solutions for Pakistanis without access to electricity will also be supported. At the same time, together with state partners financial products will be developed for businesses and private consumers as a basis for investment in renewable energy technologies. Projects will be implemented in the following areas: 1) Support for renewable energies and grid connection, 2) Improved energy efficiency, and 3) Access to and financing of renewable energy solutions for all groups.

Results achieved so far – examples:

  • A whole generation of hydropower plants were built in Pakistan with German involvement, including the large-scale Tarbela Dam and Ghazi Barotha plant, plus the associated transmission and distribution system across the country. The substantial commitments in the field of hydropower utilisation have made a key contribution to the development of urban areas and industrial zones in Pakistan. The hydropower projects were of particular significance as the two major dam projects Mangla Dam and Tarbela Dam store huge volumes of water needed for irrigation.
  • Political objectives in regard to renewable energies and energy efficiency in Pakistan were defined on the basis of the combined efforts of experts from Germany and Pakistan; these objectives have been adopted by the Pakistani cabinet.
  • German development cooperation with Pakistan was decisive in the establishment and promotion of the most important state actors today in the field of hydropower, namely the national Water and Power Development Authority (WAPDA) in 1983 and the Sarhad Hydel Development Organization (SHYDO) in 1986 in Khyber Pakhtunkhwa.
  • Together with our Pakistani partner, German experts have conducted numerous feasibility studies for hydropower projects with an energy potential of 3,000 MW. Run-of-river power plants with a total output of 2,000 MW have been constructed or are under construction.
  • To date, 3,000 solar photovoltaic plants have been erected in the Tharparkar District in Sindh. As a result, some 25,000 people now have access to electricity for the first time.
  • As regards grid-based electrification, a feed-in tariff for wind parks and small hydropower plants was developed and is now being implemented with German support.
  • With the help of an energy management system introduced as part of German development cooperation, the textiles industry today consumes between 10% and 20% less energy, i.e. around 62 million KWh per year. Average savings per year amount to EUR 100,000 per enterprise.


Rural Electrification Programme Sindh