Pakistan, EU ink €65mn financing deals

The governments of Pakistan and the European Union signed three grant agreements worth €65 million on Monday to launch three programs aimed at promoting economic and energy development, enhancing the rule of law, and improving the business environment. The agreements were signed by EU Ambassador to Pakistan Raimundas Karoblis and the Secretary of the Economic Affairs Division, Muhammad Humair Karim.

The initiatives, funded under the EU’s Multiannual Indicative Programme 2021-2027, focus on three key aspects of Pakistan’s development. The 'Global Gateway development facilitation for Pakistan' project seeks to attract more foreign investment by improving the tax system and strengthening long-term financial planning. The 'Energy and Natural Environment Resilience in Khyber Pakhtunkhwa' program aims to expand renewable energy in rural communities not connected to the electricity grid, and provide training to attract private investment and increase private sector involvement in Khyber Pakhtunkhwa’s energy sector.

Lastly, the 'EU Support to the Rule of Law and Business Environment in Pakistan' will help individuals access legal services in the provinces of Khyber Pakhtunkhwa and Balochistan, as well as support the provinces of Punjab and Sindh in expanding alternative and commercial dispute resolution mechanisms for legal cases. Both the EU Ambassador and the Secretary expressed appreciation for the EU’s continued support and partnership, emphasizing the timely nature of the interventions in light of Pakistan’s goals of increased foreign investment, improved access to electricity in off-grid rural areas in Khyber Pakhtunkhwa, and more advanced standards in the rule of law and resolution of commercial disputes.