Islamabad (TDI): The European Union and Pakistan have signed a grant agreement of €20 million aimed at enhancing governance and creating a good business environment.
The program aims to support economic reforms, enhance the performance of small and medium-sized enterprises (SMEs), and promote sustainable development in priority sectors.
The deal was signed by Kazim Niaz, the Secretary of the Economic Affairs Division, and EU Ambassador to Pakistan Dr. Riina Kionka.
EU Ambassador @RKionka & Secretary EAD Dr Kazim Niaz signed a €20M 🇪🇺 grant to strengthen governance & improve business environment in 🇵🇰.
The initiative supports green, inclusive growth and boosts SME competitiveness—esp those led by or benefiting women https://t.co/fk1HV2AA16 pic.twitter.com/qCgodw9wvA
— EUPakistan (@EUPakistan) July 11, 2025
This new grant is part of the European Union’s collaboration with Pakistan under the Multiannual Indicative Program (2021–2027).
Secretary Niaz appreciated the assistance, describing the agreement as a timely step towards institution-building and responsible investment in Pakistan.
“This program is in perfect sync with our national development priorities, including the Uraan Pakistan agenda geared towards private sector reform and sustainable growth,” he said.
Dr. Riina Kionka, emphasizing the importance of cooperation between the EU and Pakistan, said: “With this new initiative, the EU is making a long-term commitment to partnerships that will deliver a greener, more inclusive, and more resilient economy.”
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“We want to contribute to the conditions under which women-led businesses can flourish and green innovation can progress,” she added.
Pakistan has maintained close relations with the EU for decades, with collaboration in areas like trade, governance, climate change, and education. The newly launched program suggests shared priorities in supporting climate action, sustainable enterprise, and institutional change.
This deal is a new commitment to develop an open, inclusive economic framework between Pakistan and the European Union that is investment-friendly, supports SMEs, and aligns with national objectives and international standards of sustainability.
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