Pakistan, EU sign €65m grant agreements for three development programmes

September 22, 2026 (MLN): The Government of Pakistan and the European Union has signed three grant agreements worth a combined €65mn (approximately Rs20.64bn) to launch the Global Gateway Development Facilitation for Pakistan, Energy and Natural Environment Resilience in Khyber Pakhtunkhwa and EU Support to the Rule of Law and Business Environment in Pakistan programmes, operationalizing the two sides' shared commitment to economic and energy development and the advancement of the rule of law.

The agreements were signed by EU Ambassador to Pakistan Raimundas Karoblis and Secretary Economic Affairs Division Muhammad Humair Karim, said a press release issued.

Funded under the EU's Multiannual Indicative Programme 2021-2027, the initiatives are centred on three main aspects of Pakistan's development.

The Global Gateway Development Facilitation for Pakistan: Investment Management and Financial Enabling Environment project seeks to attract greater foreign investment by improving the tax system and strengthening the government's long-term financial planning.

The Energy and Natural Environment Resilience programme in KP is designed to expand renewable energy access in off-grid rural communities, while also providing training to help attract private investment and increase private sector participation in the province's energy sector.

Building on earlier EU assistance, the EU Support to the Rule of Law and Business Environment in Pakistan programme will improve access to police, prosecution, courts and legal aid in KP and Balochistan.

It will also support Punjab and Sindh in expanding the use of alternative and commercial dispute resolution mechanisms, with the aim of drawing greater interest from European and other companies in investing in these provinces.

The EU's development cooperation with Pakistan remains focused on economic development, climate resilience, governance and the rule of law, human rights and sustainable natural resource management.

Speaking on the occasion, Humair Karim expressed appreciation for the EU's continued support and partnership, terming the interventions timely and closely aligned with Pakistan's goals of increased foreign investment, improved electricity access in off-grid rural KP, and stronger standards in the rule of law and commercial dispute resolution.

Ambassador Karoblis said the agreements reflected the EU's commitment to supporting Pakistan's economic development and investment ambitions under its flagship Global Gateway initiative, adding that they would also help KP build a stronger and more resilient energy sector while promoting sustainable natural resource management.

He noted that the rule of law programme would strengthen access to justice for citizens in KP and Balochistan, while Punjab and Sindh would benefit through support for alternative and commercial dispute resolution in collaboration with the judiciary, legal professionals, universities and the business community.

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