Denmark to provide concessional loan for Faisalabad wastewater treatment plant

ISLAMABAD: Pakistan and Denmark have signed a concessional loan agreement for the construction of a wastewater treatment plant in Faisalabad, according to a statement issued by the Ministry of Economic Affairs.

The agreement was signed between the federal government and Danida Sustainable Infrastructure Finance (DSIF), Denmark, for the Eastern Wastewater Treatment Plant (33 MGD) of Faisalabad City – Phase I, the statement said.

The loan agreement was formally signed by Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, Tina Kullerup Hausen, Managing Director, DSIF, and Jesper B. Petterson, Managing Director, Danske Bank.

According to the statement, 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.

The project aims to support sustainable urban development by enhancing wastewater treatment infrastructure in Faisalabad. It is expected to contribute to environmental protection, public health, and resilient urban infrastructure.

“This initiative reflects the government’s commitment to strengthening cooperation with development partners in addressing critical urban challenges,” the statement added.