Pakistan and the French Development Agency (AFD) have signed an agreement through which France will provide a €12 million grant to support urban development initiatives in the country.
According to the Economic Affairs Division (EAD), the agreement was formally signed by Pakistan’s Secretary of Economic Affairs, the French ambassador, and the AFD director. The grant, which is financed by the European Union (EU), will be managed by the French Development Agency.
The primary focus of the project is to improve urban services delivered by the Water and Sanitation Agency (Wasa) in Lahore and Faisalabad—two of Pakistan’s major cities facing rapid urbanisation challenges. The initiative also aims to help the Housing Department establish and enforce an effective regulatory framework to enhance service delivery and urban management.
By strengthening the capacity of urban utilities like Wasa and implementing updated regulations, the project is expected to address issues related to water supply, sanitation, and urban planning, ultimately benefiting local communities and supporting sustainable urban development.
The collaboration reflects Pakistan’s efforts to leverage international partnerships and financial assistance to tackle urban infrastructure gaps and improve the quality of life in urban areas. It also highlights the EU’s commitment to supporting development projects in Pakistan through partnerships with institutions like AFD.
Officials from both countries expressed optimism that the grant would contribute significantly to urban resilience, better service standards, and environmental sustainability in Lahore and Faisalabad. The agreement underscores the importance of coordinated action to modernise Pakistan’s urban management systems and improve the everyday lives of citizens.
