Islamabad: The Pakistani government and the European Union (EU) have entered into a EUR 20 million grant financing agreement to initiate a project focused on enhancing governance and the business environment in Pakistan. This initiative is part of broader efforts to support the country's economic conditions.

According to Qatar News Agency, the agreement was signed by Kazim Niaz, Undersecretary of the Pakistani Ministry of Economic Affairs, and Riina Kionka, EU Ambassador to Pakistan. The primary goal of this agreement is to improve the competitiveness of Pakistan's private sector, with a focus on small and medium-sized enterprises (SMEs). This will be achieved by developing legislative frameworks, supporting the green transformation of export-oriented companies, facilitating targeted green investments, and enhancing dialogue between the public and private sectors.

The program aligns with the EU's Global Gateway strategy, its Generalized System of Preferences (GSP) commitments, and the European Green Deal. It aims to promote smart and sustainable investment while building more resilient and sustainable value chains.