The Government of Pakistan and the European Union have signed a €20 million grant agreement to initiate the “Better Governance and Business Environment” programme. This initiative underscores their joint commitment to fostering sustainable and inclusive economic development in Pakistan.
Funded through the EU’s Multiannual Indicative Programme 2021–2027, the initiative aims to improve the competitiveness of Pakistan’s private sector, with a focus on small and medium-sized enterprises (SMEs), particularly those led by or benefiting women. It seeks to strengthen SME-related legislation, support the green transition of export-oriented businesses, encourage targeted green investments, and promote constructive public-private dialogue.
The programme aligns with the EU’s broader strategies and commitments, including the Global Gateway, GSP+ requirements, and the EU Green Deal. These frameworks emphasize smart investment, sustainable practices, and the development of resilient value chains to support long-term economic growth.
This new initiative complements the EU’s ongoing development cooperation with Pakistan, which continues to focus on climate resilience, governance, human rights, and inclusive economic progress. By advancing key reforms and promoting responsible investment, the programme supports Pakistan’s broader vision of economic transformation and institutional strengthening.
