Pakistan, Team of Europe partners to allocate €179 mln to tackle water, sanitation services

ISLAMABAD,  : The government of Pakistan and Team Europe partners will allocate €179 million to address urgent water and sanitation challenges in Faisalabad and Lahore while enhancing climate resilience.

Accordingly, an agreement has been signed by the European Union (EU), Germany, France, and Italy, as well as the Agence Française de Développement (AfD), to lead a new climate initiative in Punjab’s urban centers, said a news release.

The collaborative initiative, named ‘Punjab Urban Water and Wastewater Governance and Services Improvement,’ spans six years and combines grant support from the EU with a soft loan from the AfD.

The agreement was signed by EU Ambassador Dr Riina Kionka and Deputy Director AfD Eastern Europe, Middle East, and Asia, Ms Julie Marsaudon, in the presence of German Ambassador Alfred Grannas and Italian Ambassador Andreas Ferrarese.

Recognizing Punjab’s significant economic role in contributing 54% of Pakistan’s GDP, EU Ambassador Dr Riina Kionka highlighted persistent water and sanitation challenges.

She said the EU’s commitment to supporting Pakistan in improving climate change resilience and readiness to intensify efforts for the country’s green inclusive growth—a priority under the EU Pakistan Strategic Engagement Plan and EU assistance to the country.

Dr Kionka also discussed the EU’s leading role in international climate finance, contributing about 9% of greenhouse gases but providing 30% of global public financing.

The representative of the French Ambassador noted France’s commitment to climate change, with 97% of AFD financing benefiting climate-related initiatives.

The partnership with the EU on water and sanitation exemplifies this commitment, mobilizing expertise towards climate-resilient solutions in these sectors.

The project’s objectives include enhancing access to drinking water and sanitation services by installing 200 kilometers of new water supply pipes and providing 55,000 new connections.

 It also focuses on capacity building, increasing water treatment capacity by 135,000 cubic meters per day, and reinforcing urban water governance.

The initiative is expected to improve access to drinking water for 400,000 individuals, marking a joint commitment by the Government of Pakistan and Team Europe to sustainable development, climate resilience, and a better quality of life for residents and businesses in Faisalabad and Lahore.