Pakistan, EU ink €65mn financing deals

The Government of Pakistan and the European Union (EU) on Monday signed three grant agreements worth a total of €65 million (approx. Rs20.64 billion) to launch three programmes, i.e. the ‘Global Gateway development facilitation for Pakistan’, ‘Energy and Natural Environment Resilience in Khyber Pakhtunkhwa’ and ‘EU Support to the Rule of Law and Business Environment in Pakistan’.

This cooperation package operationalises the EU and Pakistan’s shared commitment to promoting economic and energy development and advancing the rule of law, read an official statement.

The agreements were signed by the EU Ambassador to Pakistan Raimundas Karoblis and the Secretary of the Economic Affairs Division, Muhammad Humair Karim.

Funded under the EU’s Multiannual Indicative Programme 2021-2027, the initiatives focus on three main aspects of Pakistan’s development.

The ‘Global Gateway development facilitation for Pakistan: Investment Management and financial enabling environment’ project aims to attract more foreign investment to Pakistan by improving the tax system and strengthening the government’s long-term financial planning.

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The ‘Energy and Natural Environment Resilience programme in Khyber Pakhtunkhwa (KP)’ is designed to expand renewable energy in rural communities that are not connected to the electricity grid. It will also provide training to help attract private investment and increase private sector involvement in KP’s energy sector.

Building on previous EU assistance, the ‘EU Support to the Rule of Law and Business Environment in Pakistan’ will further help people to access the police, prosecution, courts and legal aid in the provinces of KP and Balochistan.

The programme will also support the provinces of Punjab and Sindh in expanding the use of alternative and commercial dispute resolution mechanisms in legal cases so that more European and other companies are interested in investing in those provinces.

Speaking at the occasion, Karim expressed his appreciation for the EU’s continued support and partnership. He highlighted the timely nature of the interventions, highlighting their strong relevance with Pakistan’s goal of increased foreign investment, improved access to electricity in off-grid rural areas in KP and more advanced standards in the rule of law and the resolution of commercial disputes.

Ambassador Karoblis stated that “these agreements demonstrate the EU’s commitment to supporting Pakistan’s economic development and investment ambitions under our flagship Global Gateway initiative.

“They will also support the authorities in KP to build a stronger and resilient energy sector while promoting the sustainable management of natural resources.  The Rule of Law will further strengthen access to justice for citizens in KP and Balochistan.

In addition, Punjab and Sindh will benefit from our support to strengthen alternative and commercial dispute resolution through collaboration with the judiciary, legal professionals, universities and the business community.”