Pakistan and the European Union (EU) have agreed on multifaceted development cooperation. The agreement will work for several sectors including smart agriculture, economic growth, sustainable infrastructure, technical and vocational education, climate and green development, digital transformation, health, and many other sectors. Furthermore, the agreement also offers a Multi Indicative Program (MIP) to support the socio-economic development of Pakistan. As per the cooperation, there will be a post-flood rehabilitation and reconstruction plan for the affected areas of Pakistan. Moreover, under the MIP 2021-2027, the EU would provide Pakistan with € 265 million during the first three years in areas of Green Inclusive Growth, Human Capital and Governance, including the Rule of Law (ROL) and Human Rights (HR).
As per the current conditions, Pakistan needs foreign assistance (social and financial) to cope with the disastrous impacts of the recent flood catastrophe. The country is suffering from its difficult phase as the climatic disaster not only impacted the infrastructure and human lives but also caused a major economic loss to the country. As a result, it has been estimated that the economic growth of Pakistan will likely decrease by 3.5% in FY23 (ADB, 2022). However, to support the country in its harder times, many developed nations including the US, the UK, Canada, and China have provided financial and social assistance to help mitigate the aftereffects of the climatic disaster.
The European Union has always been committed to helping Pakistan to support its economic development. The total ongoing portfolio of the European Union is worth €630.19 million for 38 projects. Since 2001, over €1.9 billion have been provided to Pakistan. Currently, for the Flood Relief Assistance, the European Union has provided an amount of €44.24 million to Pakistan. The current development program strongly focuses on transparency, institutional reforms, poverty alleviation, human resource development and green energy. Also, Both sides have exchanged their views on increasing the cost-effectiveness of development assistance initiatives and the measures to enhance cooperation with the private sector. It has been observed that the development cooperation will deepen their relationship for the socio-economic development of Pakistan.
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