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Pakistan, Denmark sign inter-governmental framework agreement – Mettis Global Link

Pakistan, Denmark sign inter-governmental framework agreement - Mettis Global Link

August 10, 2022 (MLN): Muhammad Humair Karim, Secretary, Ministry of Financial Affairs, and Ms. Lis Rosenholm, Ambassador of Denmark to Pakistan signed an inter-governmental framework agreement on behalf of the authorities of Pakistan and Denmark, reported a press launch issued on Wednesday.

The Federal Cupboard accorded acceptance to the signing of the framework agreement with Denmark on August 4, 2022.

This framework settlement is a breakthrough in the bilateral and economic relations between Pakistan and Demark, who have been associates in productive progress cooperation considering the fact that 1969, nevertheless, there experienced been no lively on-spending plan financial assistance extended by Denmark given that 2017.

The efforts to revive bilateral financial and advancement cooperation between the two international locations paid off with Denmark agreeing to offer on-spending plan aid to the authorities of Pakistan as a result of this Inter-Governmental Framework Settlement.

This Framework Settlement would act as an umbrella arrangement for likely improvement sector assignments emanating from it mostly in the sectors of renewable power, power performance, drinking water offer, and wastewater cure sectors.

Every single venture will have its individual funding agreement, which will be negotiated with the Danish side circumstance by case in session with all the stakeholders.

Presently, wastewater remedy tasks in Faisalabad and Lahore are in the pipeline, which is to be negotiated below the ambit of this framework arrangement. This Framework Agreement features the Danida Sustainable Infrastructure Finance (DSIF) Facility by the Danish aspect which would deliver interest-totally free but tied loans up to but not confined to €100 million and would also facilitate the transfer of technologies and know-how from Denmark to Pakistan.

The curiosity-absolutely free financial loans just after signing this framework settlement will have a 35% concessional ingredient masking the desire on the financial loan, export premium, lender margin, and an upfront grant if these expenses do not arrive at 35% of the deal quantity.

Ms. Lis Rosenholm also had a short meeting with the Minister for Economic Affairs, Sardar Ayaz Sadiq in his place of work. He apprised the Ambassador that Pakistan and Denmark enjoy a helpful and cordial romantic relationship and a ton of prospective exists to improve the relationship involving each nations.

He more mentioned that the attempts to revive bilateral financial and development cooperation involving the two countries paid off with Denmark agreeing to provide on-spending plan aid to the federal government of Pakistan by this inter-governmental framework agreement and the aim on Squander Water Treatment Initiatives in Faisalabad and Lahore is immensely appreciated.

Secretary Economic Affairs Division thanked H.E. the Ambassador of Denmark to Pakistan, the Danish Global Enhancement Agency (DANIDA), and the Danish governing administration for their guidance to Pakistan.

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Posted on:2022-08-10T23:00:05+05:00