Pakistan and the European Union have signed financing agreements worth €65 million to support investment, governance, energy and environmental resilience.
The agreements were signed in Islamabad on Monday by EU Ambassador to Pakistan Raimundas Karoblis and Economic Affairs Division Secretary Muhammad Humair Karim.
The funding, equivalent to around $75 million or Rs20.64 billion, will be used for three major programmes under the EU’s Multiannual Indicative Programme for 2021-2027.
The first initiative, called Global Gateway Development Facilitation for Pakistan, aims to help attract foreign investment. It will focus on improving investment management, supporting environmental projects and strengthening the country’s tax and financial planning systems.
The second programme will focus on energy and natural environment resilience in Khyber Pakhtunkhwa. It aims to expand renewable energy access in rural areas that are not connected to the national electricity grid.
The programme will also provide training and support to encourage private investment in KP’s energy sector. Officials expect greater private-sector participation to help expand clean energy solutions in underserved communities.
The third initiative will support the rule of law and improve the business environment in Pakistan. It will focus on helping citizens gain better access to police services, prosecution, courts and legal aid in Khyber Pakhtunkhwa and Balochistan.
Punjab and Sindh will also benefit from the programme through greater use of alternative and commercial dispute resolution mechanisms. The initiative aims to make it easier and more efficient for businesses to resolve legal and commercial disputes.
Officials said improved dispute resolution could also help create a more favourable environment for European and other foreign companies considering investment in the two provinces.
Economic Affairs Division Secretary Muhammad Humair Karim welcomed the EU’s continued cooperation with Pakistan. He said the programmes were aligned with the country’s priorities, including attracting foreign investment and improving electricity access in off-grid rural areas.
He also highlighted the importance of strengthening legal standards and improving mechanisms for resolving commercial disputes.
EU Ambassador Raimundas Karoblis said the agreements reflected the European Union’s commitment to supporting Pakistan’s economic development and investment objectives through its Global Gateway initiative.
He said the programmes would also help Khyber Pakhtunkhwa develop a more resilient energy sector while promoting sustainable management of natural resources.
Karoblis said the rule-of-law programme would improve citizens’ access to justice in KP and Balochistan.
He added that Punjab and Sindh would receive support to strengthen alternative and commercial dispute resolution through cooperation with courts, lawyers, universities and the business community.
