Pakistan and the European Union have signed agreements worth €65 million to launch three major development programmes aimed at strengthening investment, energy, environmental sustainability, the rule of law and the country’s business environment.
The agreements were signed by Economic Affairs Secretary Muhammad Humair Karim and EU Ambassador Riina Kionka, according to the Ministry of Economic Affairs. The initiatives mark a new phase of economic cooperation between Pakistan and the European Union.
According to the Ministry of Economic Affairs, the three programmes will focus on improving Pakistan’s investment climate, strengthening the rule of law and creating a more supportive environment for businesses.
The financial assistance will also support initiatives related to energy and environmental sustainability, while measures under the programmes are expected to improve electricity access in rural areas and strengthen mechanisms for resolving commercial disputes.
Global Gateway to support foreign investment
One of the programmes will be implemented under the EU’s Global Gateway initiative and will seek to pave the way for greater foreign investment in Pakistan.
The programme aims to increase interest among European and other foreign companies in investing in Pakistan, while also improving the tax system and long-term fiscal planning.
The ministry said the initiative aligns with Pakistan’s national objective of increasing foreign investment and strengthening the country’s overall business environment.
The EU’s Global Gateway framework already covers investment, sustainable development and connectivity, with Pakistan among the countries where the bloc is supporting projects in areas including energy and climate-resilient infrastructure.
Renewable energy projects planned for KP
The second programme will focus on promoting renewable energy in off-grid rural areas of Khyber Pakhtunkhwa.
It will also seek to increase private-sector investment and partnerships in the province’s energy sector, with the broader objective of improving access to electricity while supporting environmental sustainability.
The Ministry of Economic Affairs said financial assistance under the agreements would advance initiatives related to both energy development and environmental sustainability.
Access to justice, commercial dispute resolution
The third programme will focus on improving citizens’ access to justice in Khyber Pakhtunkhwa and Balochistan.
At the same time, systems for alternative dispute resolution and commercial dispute settlement will be strengthened in Punjab and Sindh, with the aim of making it easier to resolve commercial disputes and improve the business environment.
The initiatives therefore cover all four provinces, with different components targeting justice, dispute resolution and institutional systems according to regional needs.
Secretary Karim said the government’s appreciation for the European Union’s continued support and partnership remains high. He said the programmes are aligned with Pakistan’s national goal of increasing foreign investment and noted that the measures would help improve electricity access in rural areas as well as the resolution of commercial disputes.
The EU ambassador said the agreements reflect a commitment to supporting Pakistan’s economic development and investment.
The ministry said the new programmes represent a significant expansion of Pakistan-EU economic cooperation, spanning areas from investment and taxation to renewable energy, environmental sustainability, rule of law and access to justice.
