"This visit gives us the opportunity to take relations between Germany and Pakistan to an entirely new level," said Chancellor Angela Merkel at the start of the joint press conference. Angela Merkel pointed to partner schools and development cooperation which has flourished.

In this context, a cooperation agreement on renewable energies was signed, reported Angela Merkel. There is scope for stepping up economic cooperation across the entire energy sector assured the Chancellor, and pointed to Pakistan’s precarious energy situation.

Scope for closer cooperation

Angela Merkel called for a clear legal framework for German private-sector investment in Pakistan. She feels that a German Chamber of Commerce in Pakistan would be helpful in this context, but the preconditions for this must be put in place gradually. Their meeting also explored the matter of a free trade agreement between the EU and Pakistan.

Companies in Germany and Pakistan with interests in bilateral business relations have got together to found the Karachi-based Pakistan German Business Forum (PGBF). The steady growth in the number of members of the PGBF is a clear indication of the growing interest on the part of companies in both countries in establishing business links. In 2014 two more organisations were founded to promote bilateral business relations: German Pakistan Trade and Invest (GPTI) in Pakistan and GATE Pakistan in Germany. The visit of a business delegation from Pakistan, led by the then Premier of the Punjab, Shahbaz Sharif, to Berlin and Munich at the end of October 2013 lent cooperation additional impetus.

Achievements in the fight against terrorism

The Chancellor praised Pakistan’s achievements in fighting Taliban terrorism, and very much welcomed the fact that "close contacts have been established between the new Afghan leadership and the government of Pakistan". Relations between Pakistan and India were also discussed. European states including Germany have a great interest in seeing stability in the region, said Angela Merkel.

Development cooperation between Germany and Pakistan began in 1961. Since then, the German government has funded projects worth a total of 2.5 billion euros. As agreed with the government of Pakistan, bilateral cooperation focuses on the following priority areas: health care, basic education and vocational training, energy (with a focus on renewables and energy efficiency) and governance.

Pakistan is one of the first of Germany’s partner countries to benefit from innovative development funding instruments. Under the so-called debt conversion scheme, the government of Pakistan is rewarded for making public investments in contractually agreed development programmes by debt cancellation worth twice the amount invested. This has enabled a total of 166 million euros to be invested in education, health care and disaster prevention up to the end of 2013.

In 2013, Germany made available 112.5 million euros from the Federal Ministry for Economic Cooperation and Development’s budget for development cooperation with Pakistan.