German Chancellor Angela Merkel said after talks with visiting Pakistani Prime Minister Nawaf Sharif that Berlin and Islamabad are eager to improve bilateral relations.
After the November 11 discussions, Merkel said Germany wants to increase its investments in Pakistan, especially in the energy sector.
Merkel said Germany's KfW state development bank was already involved in projects in Pakistan including hydropower plants, but added that the security situation was sometimes a deterrent.
Sharif -- who arrived in Berlin on November 10 for a two-day official visit -- said that German companies had shown plenty of interest in his country's energy sector.
Merkel also paid tribute to Malala Yousafzai, calling her the "identity of Pakistan."
Malala, who was shot by the Taliban for championing the right of girls to an education, shared this year's Nobel Peace Prize with an Indian activist.