Pakistan, EU sign €65m agreements for development programmes

Pakistan and the European Union have signed financing agreements worth €65 million, or around $75 million, to support global connectivity, rule of law, business environment, energy and environmental sustainability.

The agreements were signed by EU Ambassador to Pakistan Rymondas Karoblis and Economic Affairs Division Secretary Muhammad Humayun Karim.

According to the Economic Affairs Division, the EU will provide €65 million, around Rs20.64 billion, for three programmes in Pakistan under its 2021-2027 Multiannual Indicative Programme.

The first programme, the Global Gateway Development Facility for Pakistan, aims to improve investment management and financial facilitation for environmental projects.

It will also support improvements in the tax system and strengthen the government’s long-term fiscal planning to help attract foreign investment.

The second programme focuses on energy and environmental sustainability in Khyber Pakhtunkhwa.

It aims to expand renewable energy use in rural communities that are not connected to the national electricity grid.

The programme will also provide training to attract private investment and increase private-sector participation in KP’s energy sector.

The third programme will support the rule of law and business environment in Pakistan.

It will help improve citizens’ access to police, prosecution, courts and legal aid in Khyber Pakhtunkhwa and Balochistan.

It will also promote alternative dispute resolution and commercial dispute resolution mechanisms in Punjab and Sindh to help improve the investment environment for European and other companies.

The Economic Affairs Division said EU development cooperation with Pakistan focuses on economic growth, climate resilience, rule of law, human rights and sustainable use of natural resources.

Speaking at the signing ceremony, Secretary Muhammad Humayun Karim appreciated the EU’s continued support and partnership.

He said the programmes were launched at a timely stage as they align with Pakistan’s objectives of attracting foreign investment, improving electricity access in underserved rural areas of KP and strengthening the rule of law and commercial dispute resolution.

EU Ambassador Rymondas Karoblis said the agreements reflected the EU’s commitment to supporting Pakistan’s economic development and investment objectives under the Global Gateway initiative.

He said the agreements would help KP authorities develop a stronger and more resilient energy sector while promoting sustainable management of natural resources.

Karoblis said the rule-of-law programme would improve access to justice for citizens in KP and Balochistan and strengthen alternative and commercial dispute resolution mechanisms in Punjab and Sindh through cooperation among the judiciary, legal professionals, universities and the business community.