EU, Pakistan sign $74.6m agreements to boost investment, clean energy, rule of law

Pakistan’s government has said increasing foreign investment is a priority as it attempts to ensure sustainable economic growth. It formed the Special Investment Facilitation Council, a hybrid government body that features both civilians and military officials, in 2023 to attract international investment in key economic sectors.

“These agreements demonstrate the EU’s commitment to supporting Pakistan’s economic development and investment ambitions under our flagship Global Gateway initiative,” EU Ambassador Raimundas Karoblis said at the signing. The first program aims to attract foreign investment by improving Pakistan’s tax system and strengthening the government’s long-term financial planning.

The second will expand renewable energy in rural communities in Khyber Pakhtunkhwa (KP) province that are not connected to the national grid. It will also provide training intended to draw private investment into the province’s energy sector.

The third, which builds on earlier EU assistance, will help people in Khyber Pakhtunkhwa and Balochistan access police, prosecution services, courts and legal aid. Both provinces border Afghanistan and have borne the brunt of militant attacks in Pakistan in recent years.

South Asia Terrorism Portal, Balochistan recorded the most violence in July with 176 attacks and 438 deaths against 143 incidents and 244 fatalities taking place in KP over the same period.

The same program will support Punjab and Sindh, Pakistan’s most populous and industrialized provinces, in expanding alternative and commercial dispute resolution, with the stated aim of making them more attractive to European and other companies looking to invest.

The EU’s development cooperation with Pakistan focuses on economic development, climate resilience, governance, the rule of law, human rights and sustainable management of natural resources, the statement said.