AFD Group activity in Pakistan
AFD was authorized to operate in Pakistan in the aftermath of the earthquake that hit the country on 8 October 2005.
A project for the reconstruction of individual homes in rural regions affected by the earthquake was 100% disbursed by March 2008 (€40M).
In 2006 AFD was authorized to extend its intervention area to emerging countries, including Pakistan, with the aim of addressing the issue of Global Public Goods:
- To combat climate change
- To preserve biodiversity
- To combat communicable and emerging diseases
This decision was ratified by AFD’s Board of Directors in January 2007.
A regional agency with competence for Pakistan and Afghanistan opened in Islamabad in May 2007. AFD’s strategy is initially based on climate change issues and gives priority to operations in energy efficiency and renewable energy sectors. The first financing operations should be committed in 2009.PROPARCO, AFD’s private sector financing arm, began operating in Pakistan in early 2007 with the same strategic priorities as AFD (Global Public Goods). Two projects are currently active: an equity investment in an investment fund and a loan to a 200 MW gas plant that uses lean gas which is now burned.
