F.P. Report
ISLAMABAD: Pakistan and the European Union (EU) have signed a €20 million grant agreement to support improved governance and a better business environment in the country.
According to the Federal Ministry of Economic Affairs, the agreement kicks off a new program titled “Improved Governance and Business Environment.” The deal marks a joint commitment by both sides to work hand in hand for sustainable and inclusive economic development.
The agreement was signed by EU Ambassador Dr. Riina Kionka and Pakistan’s Secretary of Economic Affairs Dr Kazim Niaz. The program will be backed financially under the EU’s long-term indicative framework for 2021–2027.
The EU’s main goal through this agreement is to strengthen Pakistan’s private sector — especially small and medium-sized enterprises (SMEs), including those led by or benefiting women – by helping them build capacity and grow stronger over time.
Under the program, efforts will be made to tighten laws related to SMEs, help export-based industries shift toward greener practices, encourage more investment, and improve dialogue between the public and private sectors.
The Ministry noted that this initiative is aligned with the EU’s Global Gateway strategy, the GSP+ commitments, and the European Green Deal. The program is expected to lay the groundwork for sustainable investment, robust supply chains, and a greener economy.
