Pakistan and the European Union formalised three grant agreements totalling €65 million (about Rs 20.64 billion) on 21 September 2026. The deals support programmes aimed at drawing more foreign investment, expanding renewable energy in remote areas, and improving the justice system and business climate.
EU Ambassador to Pakistan Raimundas Karoblis and Economic Affairs Division Secretary Muhammad Humair Karim signed the agreements. The funding comes from the EU’s Multiannual Indicative Programme for 2021-2027 and forms part of the bloc’s Global Gateway initiative.
The first programme, Global Gateway Development Facilitation for Pakistan, focuses on investment management and a stronger financial environment. It will help modernise the tax system and improve the government’s long-term financial planning so the country can attract more overseas capital.
The second targets energy and natural environment resilience in Khyber Pakhtunkhwa. It will bring renewable power to rural communities still without grid electricity and train local people so private companies become more active in the province’s energy sector.
The third programme strengthens the rule of law and business environment. In Khyber Pakhtunkhwa and Balochistan it will improve people’s access to police, prosecutors, courts and legal aid. In Punjab and Sindh it will expand alternative and commercial dispute-resolution options, making it easier and faster for businesses, including European firms, to settle disagreements.