Pakistan, EU sign €65m financing agreements for investment, energy and rule of law
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✧ GENERATE BRIEFING
Pakistan and the European Union have signed three grant agreements totaling €65 million, equivalent to approximately Rs20.64 billion, to fund investment facilitation, renewable energy, and legal reforms under the EU's Multiannual Indicative Programme 2021–2027. The pacts were finalized in Islamabad by EU Ambassador Raimundas Karoblis and Economic Affairs Division Secretary Muhammad Humair Karim. The package allocates funds toward the Global Gateway Development Facilitation initiative to optimize tax frameworks and attract foreign investment, supports off-grid renewable energy infrastructure and private sector training in Khyber Pakhtunkhwa, and strengthens judicial access, police frameworks, and commercial dispute-resolution mechanisms across Khyber Pakhtunkhwa, Balochistan, Punjab, and Sindh. Officials noted the funding directly supports national economic growth, regional climate resilience, and standardized commercial arbitration environments.
ISLAMABAD: Pakistan and the European Union have signed three grant agreements worth a combined €65 million, or approximately Rs20.64 billion, to support investment, renewable energy, environmental resilience and the rule of law in the country.
The agreements were signed by EU Ambassador to Pakistan Raimundas Karoblis and Secretary Economic Affairs Division Muhammad Humair Karim on Monday. The financing is being provided under the EU’s Multiannual Indicative Programme 2021–2027.
One of the programmes, Global Gateway Development Facilitation for Pakistan, will focus on improving the investment and financial environment. It aims to attract greater foreign investment by supporting improvements in the tax system and strengthening the government’s long-term financial planning.
A second programme will target energy and natural-environment resilience in Khyber Pakhtunkhwa. It will support renewable-energy development in rural communities without access to the national electricity grid, while also providing training aimed at encouraging private investment in the province’s energy sector.
The third agreement, EU Support to the Rule of Law and Business Environment in Pakistan, will strengthen access to police, prosecution, courts and legal aid in Khyber Pakhtunkhwa and Balochistan.
The programme will also support Punjab and Sindh in expanding alternative and commercial dispute-resolution mechanisms. The initiative is intended to improve the business environment and help attract European and other foreign investors by making commercial dispute resolution more efficient.
Economic Affairs Division Secretary Muhammad Humair Karim said the initiatives were timely for Pakistan’s objectives of increasing foreign investment, expanding electricity access in off-grid rural areas of KP and improving rule-of-law and commercial dispute-resolution standards.
EU Ambassador Karoblis said the agreements reflected the bloc’s support for Pakistan’s economic development and investment ambitions under its Global Gateway initiative, while also supporting a more resilient energy sector and improved access to justice.
The financing package therefore combines economic and institutional support, covering investment facilitation, renewable energy, natural-resource management and legal reforms across several Pakistani provinces.
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