The financing package targets foreign investment, renewable energy, climate resilience, legal access and a stronger business environment across Pakistan.
The European Union and Pakistan have signed financing agreements worth €65 million to support investment, improve the business environment, strengthen the rule of law and enhance energy and environmental resilience.
The agreements were signed in Islamabad by EU Ambassador to Pakistan Raimundas Karoblis and Economic Affairs Division Secretary Muhammad Humair Karim. The cooperation package is being implemented under the EU’s Multiannual Indicative Programme for 2021-2027.
Investment and Financial Environment
One of the initiatives, titled Global Gateway Development Facilitation for Pakistan, will focus on improving the country’s investment climate. The programme aims to attract greater foreign investment by supporting improvements in the tax system and strengthening long-term public financial planning.
The initiative forms part of the EU’s Global Gateway framework, which seeks to promote sustainable investment and economic development through stronger institutional and financial systems.
Renewable Energy in Khyber Pakhtunkhwa
Another major component will focus on energy and natural environment resilience in Khyber Pakhtunkhwa. The programme is designed to expand access to renewable energy for rural communities that remain outside the national electricity grid.
It will also provide capacity-building and technical support aimed at encouraging private investment and increasing private-sector participation in the province’s energy sector.
Rule of Law and Business Environment
The third programme will build on earlier EU assistance to strengthen access to justice and improve the business environment. Support will target police, prosecution services, courts and legal aid systems in Khyber Pakhtunkhwa and Balochistan.
Punjab and Sindh will also receive assistance to expand alternative and commercial dispute resolution mechanisms. The initiative is intended to improve the resolution of business-related disputes and strengthen conditions for domestic and international investors.
EU-Pakistan Development Cooperation
Economic Affairs Division said the overall package reflects shared priorities related to economic development, energy security, climate resilience, governance and sustainable natural resource management.
Karim welcomed the EU’s continued partnership, saying the initiatives align with Pakistan’s objectives of attracting foreign investment, expanding electricity access in underserved rural areas and improving legal and commercial dispute-resolution standards.
Ambassador Karoblis said the agreements demonstrate the EU’s continued support for Pakistan’s development and investment ambitions. He also highlighted the programmes’ role in strengthening the energy sector in Khyber Pakhtunkhwa, improving access to justice and supporting more effective commercial dispute resolution in Punjab and Sindh.