Pakistan, Germany partner on power sector digitization, green transition

October 01, 2025 (MLN): Pakistan has reaffirmed its commitment to building a modern, transparent, and sustainable energy system through enhanced cooperation with Germany.

In a meeting with a delegation of the German Development Agency (GIZ), led by German Embassy’s Deputy Head of Mission Arno Kirchhof, both sides discussed ongoing collaboration in the energy sector, particularly under the “Decarbonization and Digitization of Power Distribution Network” program.

The €7 million grant program, introduced in 2024 and continuing until 2026, is providing technical assistance to the Ministry of Energy.

It focuses on digitizing the power distribution network, implementing pilot projects, and strengthening the capacity of officials.

The initiative covers four core areas: regulatory support, renewable energy integration, pilot projects, and knowledge sharing.

Germany has also approved an additional €2.5m grant for a Battery Energy Storage System (BESS), which will include a pilot project and business model developed with the Ministry of Energy.

Pilot projects are already underway to digitize feeders in PESCO and LESCO.

Speaking at the occasion, Federal Minister for Power Sardar Awais Ahmad Khan Leghari emphasized that modernizing Pakistan’s energy sector is essential to overcoming current challenges and achieving long-term sustainability.

He emphasized that digitization, renewable integration and research and development will shape future policies and align them with global energy trends.

The German delegation praised Pakistan’s reform efforts and assured continued GIZ cooperation to help make the energy sector more modern and environmentally friendly.

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