EU and Pakistan seal €65 million financing pact for development and governance projects
The European Union and Pakistan signed financing agreements totaling €65 million to support development, rule-of-law reforms and energy resilience.
In Islamabad, EU Ambassador Raimundas Karoblis and Economic Affairs Division secretary Muhammad Humair Karim formalised financing agreements worth €65 million. The EU will channel the funds into three distinct initiatives: a Global Gateway Development Facilitation programme aimed at improving tax systems and long-term financial planning; an Energy and Natural Environment Resilience project to expand renewable power in off-grid rural areas of Khyber Pakhtunkhwa and train private investors; and a rule-of-law and business-environment support scheme covering Khyber Pakhtunkhwa, Balochistan, Punjab and Sindh.
All programmes are financed under the EU’s Multiannual Indicative Programme for 2021-2027. Officials highlighted the relevance of the aid for attracting foreign investment, expanding electricity access and strengthening legal frameworks. The agreements reflect the EU’s ongoing commitment to Pakistan’s economic development and climate-resilience goals.
Why it matters
The funding aims to boost Pakistan's investment climate, expand renewable energy and improve legal systems, supporting broader economic growth.
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