Pakistan, EU sign financing agreements worth €65m

ISLAMABAD: Pakistan and the European Union (EU) on Monday signed €65 million (about $75m) in financing agreements to support global gateway investments, strengthen the rule of law and business environment and enhance energy and environmental resilience.

The agreements were signed by the EU Ambassador to Pakistan Raimundas Karoblis and the secretary of the Economic Affairs Division (EAD), Muhammad Humair Karim, on behalf of their respective sides, the division said in a statement.

Under the agreements, the EU is to provide a total of €65m (about Rs20.64bn) to launch three separate programmes: 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.

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

The first, Global Gateway Development Facilitation for Pakistan, envisages investment management and financial enablement of environmental projects to attract more foreign investment to the country by improving the tax system and strengthening the government’s long-term financial planning.

The second project, Energy and Natural Environment Resilience in 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.

The third programme, building on previous EU assistance, covers EU support to the rule of law and business environment in Pakistan to help people access the police, prosecution, courts and legal aid in the provinces of KP and Balochistan.

The programme will also support Punjab and Sindh in expanding the use of alternative and commercial dispute resolution mechanisms in legal cases, in order to build interest from European and other companies in investing in these provinces.

The EAD said the EU’s development cooperation with Pakistan remained focused on economic development, climate resilience, governance and the rule of law, as well as human rights and sustainable natural resources.

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

Ambassador Karoblis said the agreements demonstrated the EU’s commitment to supporting Pakistan’s economic development and investment ambitions under the flagship Global Gateway initiative. He noted that they would 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,” he said.

“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.”