Pakistan, EU Sign €65m Agreements: What the New Funding Means for Economy, KP and Energy
By Margalla Tribune News Desk
ISLAMABAD, September 21, 2026 — Pakistan and the European Union on Monday signed three grant agreements worth €65 million (approximately Rs20.64 billion) to support investment, renewable energy, environmental resilience and the rule of law in Pakistan.
The agreements were signed by EU Ambassador to Pakistan Raimundas Karoblis and Economic Affairs Division Secretary Muhammad Humair Karim. The funding comes under the EU’s Multiannual Indicative Programme 2021–2027.
The first programme, Global Gateway Development Facilitation for Pakistan, is aimed at improving the country’s investment and financial environment. It will focus on strengthening the tax system and government’s long-term financial planning, with the broader objective of attracting greater foreign investment.
The second initiative, Energy and Natural Environment Resilience in Khyber Pakhtunkhwa, is particularly relevant to communities that remain outside the national electricity grid. The programme will support renewable energy expansion in rural areas while providing training intended to encourage private investment and greater private-sector participation in KP’s energy sector.
The third programme, EU Support to the Rule of Law and Business Environment in Pakistan, will focus on improving access to police, prosecution, courts and legal aid in KP and Balochistan. It will also support Punjab and Sindh in expanding alternative and commercial dispute-resolution mechanisms.
According to the EU, the measures are designed to strengthen the environment for domestic and foreign investment while improving access to justice and commercial dispute resolution.
For Pakistan, the €65 million package comes at a time when attracting foreign investment, improving energy access and strengthening institutional capacity remain important economic priorities.
EU Ambassador Karoblis said the agreements demonstrate the EU’s support for Pakistan’s economic and investment ambitions under its Global Gateway initiative, while also supporting a more resilient energy sector and sustainable management of natural resources.
