Danida returns to Pakistan with 33 MGD wastewater project

September 19, 2025 (MLN): The Government of Pakistan and the Danida Sustainable Infrastructure Finance (DSIF), Denmark, have signed a concessional loan agreement for the project titled “Construction of Eastern Wastewater Treatment Plant (33 MGD) of Faisalabad City Phase-I.”

The loan agreement was signed by Mr. Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, Ms. Tina Kullerup Hausen, Managing Director, DSIF, and Mr. Jesper B. Petterson, Managing Director, Danske Bank, said a press release issued today. 

The project is particularly significant as it represents the first intervention by Danida in Pakistan’s development sector after a long hiatus.

Moreover, it is the first loan signed under the Pakistan–Denmark Framework Agreement, concluded in 2022.

This project will contribute to sustainable urban development by improving wastewater treatment facilities in Faisalabad, thereby supporting environmental protection, public health, and resilient urban infrastructure.

It demonstrates the Government of Pakistan’s commitment to strengthening cooperation with development partners to address pressing urban challenges.

Copyright Mettis Link News