Pakistan Signs Inter-Governmental Framework Agreement With Denmark.
ISLAMABAD -- Pakistan has signed an inter-governmental framework agreement with the government of Denmark for the interest free loans in renewable energy, energy efficiency, water supply and wastewater treatment sectors.
Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, Ms. Lis Rosenholm, Ambassador of Denmark to Pakistan, signed an Inter-Governmental Framework Agreement between the Governments of Pakistan and Denmark. This Framework Agreement offers the Danida Sustainable Infrastructure Finance (DSIF) Facility by the Danish side which would provide interest free but tied loans up to but not limited to pound 100 million who would also facilitate transfer of technology and knowhow from Denmark to Pakistan. The interest free loans after signing this framework agreement will have a 35% concessionally element covering the interest on the loan, export premium, bank margin and an upfront grant if these expenses do not arrive at 35% of the contract amount.
Ms. Lis Rosenholm, the Ambassador of Denmark to Pakistan, also had a brief meeting with the Minister for Economic Affairs, Sardar Ayaz Sadiq in his office. He apprised the Ambassador that Pakistan and Denmark enjoy a friendly and cordial relationship and a lot of potential exist to enhance the relationship between both nations. He further stated that the efforts to revive bilateral economic and development cooperation between the two countries paid off with Denmark agreeing to provide on-budget support to the government of Pakistan through this Inter-Governmental Framework Agreement and the focus on Waste Water Treatment Projects in Faisalabad and Lahore...
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