Pakistan and EU Join Forces for Economic Growth and Better Governance

Islamabad: A significant step towards bolstering Pakistan’s economic landscape was taken on Thursday with the signing of a €20 million grant agreement between Pakistan and the European Union (EU). This agreement marks the commencement of the “Better Governance and Business Environment” initiative, designed to enhance governance structures and elevate the competitive edge of the private sector, with a particular focus on small and medium enterprises (SMEs).

The agreement was officially sealed by EU Ambassador Dr. Riina Kionka and Secretary of the Economic Affairs Division, Dr. Kazim Niaz. This initiative is an integral component of the EU’s Multiannual Indicative Programme spanning from 2021 to 2027.

According to statements from officials, the core objectives of the initiative include providing support for SME-focused legislation, championing the adoption of green practices within export-oriented businesses, and stimulating strategic investments that are in harmony with the EU’s Global Gateway strategy, the GSP+ framework, and the EU Green Deal.

Dr. Niaz expressed gratitude to the EU for their ongoing assistance, recognizing the program as a well-timed intervention that aligns seamlessly with the government’s “Uraan Pakistan” strategy. This strategy is geared towards driving institutional reforms and fostering responsible growth within the private sector.

Ambassador Kionka affirmed the EU’s dedication to assisting Pakistan in its pursuit of a more inclusive and sustainable economic model. This commitment involves strategic investments in areas such as green innovation, women-led businesses, and collaborative public-private partnerships.

The EU’s cooperative development efforts with Pakistan will maintain a strong focus on climate resilience, the safeguarding of human rights, effective governance, and the promotion of sustainable economic development.