German swaps Pak debt

ISLAMABAD—Government of Pakistan and Germany here on Friday inked an agreement of Euro 30 million German Debt Swap-iii for Rehabilitation of infrastructure in the North West Frontier Province (NWFP) . Under the agreement Euro 30 million of Pakistani debt will be canceled by the German government when counterparts funds of Euro 15 million (Rs.151.82 million) shall be used for infrastructure measures in NWFP by the government of Pakistan. The agreement was signed by Secretary Economic Affairs Division, M.Akram Malik on behalf of the government of Pakistan while Dr.Anna Christine Janke on behalf of Kreditanstalt fur Wiederaufbau (KfW) on behalf of here organization. Lt General Nadeem Ahmed Deputy Chairman Earthquake Reconstruction and Rehabilitation Authority (ERRA) also and witnessed the ceremony. The project executing agency ERRA shall use Euro 15 million (Rs.151.82 million),for the reconstruction of roads , water supply and sanitation , targeting the Districts of Abbottabad, Mansehra and Battagram. Negotiations are also underway for two other Debt Swaps IV -school infrastructure NWFP for Euro 25 million and Debt Swap-v -Development of in FATA for Euro 20 million . For each of the debt swap German government will waive off the full amount when half of it will be spent by the government of Pakistan in the agreed areas.—Agencies