EU and Pakistan Sign €65 Million Agreements to Boost Investment, Energy and Rule of Law

• Three EU-funded programmes will support investment reforms, renewable energy and access to justice in Pakistan.
• Off-grid rural communities in Khyber Pakhtunkhwa will benefit from expanded renewable energy initiatives.
• Punjab and Sindh will receive support to strengthen alternative and commercial dispute resolution systems.

The European Union and Pakistan signed three grant financing agreements worth €65 million, approximately Rs20.64 billion, in Islamabad on Monday to support economic development, energy resilience and legal reforms.

EU Ambassador to Pakistan Raimundas Karoblis and Economic Affairs Division Secretary Muhammad Humair Karim signed the agreements. The funding has been provided under the EU’s Multiannual Indicative Programme 2021–2027.

The first programme, Global Gateway Development Facilitation for Pakistan, is aimed at creating a more favourable investment environment by improving the tax system and strengthening the government’s long-term financial planning. The initiative is expected to help Pakistan attract greater foreign investment.

The Energy and Natural Environment Resilience Programme will expand renewable energy access in rural areas of Khyber Pakhtunkhwa that are not connected to the national electricity grid. It will also support training and measures to encourage private-sector investment in the province’s energy sector.

The third programme will strengthen the rule of law and improve the business environment. It will help residents of Khyber Pakhtunkhwa and Balochistan access police, prosecution services, courts and legal aid more effectively.

Punjab and Sindh will receive assistance to expand alternative and commercial dispute resolution mechanisms. The reforms are intended to resolve business-related legal cases more efficiently and improve the investment climate for European and other international companies.

Karim said the programmes were closely aligned with Pakistan’s priorities, including attracting foreign investment, expanding electricity access in off-grid communities and improving legal and commercial dispute resolution standards.

Ambassador Karoblis said the agreements reflected the EU’s commitment to Pakistan’s economic and investment goals under the Global Gateway initiative. He added that the programmes would support a more resilient energy sector in Khyber Pakhtunkhwa, sustainable natural-resource management and improved access to justice across the provinces.