Pakistan Influential partner country in South Asia
Pakistan is a country torn apart in many ways. Its geographical position makes Pakistan very vulnerable to natural disasters. On the political front, it is wearing itself down through continuous conflicts with its economically stronger neighbour, India. Relations with the United States are tense, as the US has been accusing Pakistan of taking too little action against terrorism. In addition, Pakistan is increasingly affected by religiously and economically motivated conflicts between Saudi Arabia and Iran. As a result, Pakistan is trying to establish closer relations with China, both politically and economically.
There is an urgent need for social, economic and environmental reforms. Pakistan is a young democracy with a rapidly growing population (about 212 million at present). It is relatively stable politically; its economic growth rate has been increasing. This means that there is a lot of potential for Pakistan to launch such reforms. The country's internal dynamism and its global weight make Pakistan an important partner for Germany's development cooperation.
Germany and Pakistan have engaged in development cooperation since 1961, the year that the BMZ was founded. Currently, Germany's development cooperation with Pakistan focuses on three priority areas: governance, energy and sustainable economic development.
German development cooperation with Pakistan
Germany's development cooperation with Pakistan is geared towards supporting the country in consolidating democracy within the government and society and in achieving sustainable economic development. For the years 2019 and 2020, the Federal Ministry for Economic Cooperation and Development (BMZ) committed 109.1 million euros for this purpose. Bilateral cooperation focuses on the following priority areas:
- Sustainable economic development
In addition, Germany is helping to reduce the causes of displacement in Pakistan by supporting the structurally weak border regions with Afghanistan in supplying refugees, improving municipal infrastructure in communities with a high proportion of migrants and promoting the reintegration of Pakistani internally displaced persons in tribal areas. As far as possible, all projects support the empowerment of women and climate change mitigation and adaptation.
Geographically, the programme of development cooperation is concentrated on the north-west of the country. Germany is one of the few donors working in Khyber Pakhtunkhwa and the tribal areas with their own structures and staff. Another focus is on the populous Province of Punjab. Among other things, it is home to a large number of textile companies.