ISLAMABAD: The European Union will provide 87 million euros for three new development programmes to support green and inclusive economic growth in Pakistan.

With a focus on Khyber Pakhtunkhwa, Gilgit-Baltistan and Balochistan, the new programmes will improve agricultural value chains, provide access to clean energy and enhance availability of the skilled labour force.

These programmes are part of the European Union’s support to Pakistan in the post-flood rehabilitation and reconstruction. Agreements for the new development projects were signed in Islamabad on Monday.

Economic Affairs Division Secretary Dr Kazim Niaz and EU Ambassador to Pakistan Dr Riina Koinka signed the agreements on behalf of their sides.

Programmes to be launched in KP, GB and Balochistan

These three programmes have been designed in close cooperation with the federal and provincial governments and are part of the broader coordination efforts by the EU and its member states.

EAD Secretary Dr Kazim Niaz thanked EU support for the programmes and said that the EU was the most valued development partner of Pakistan and its focus was particularly on socioeconomic development of vulnerable communities in the country. “Clean and green energy is a yardstick for any sustainable development and the EU support in this particular area is necessary in providing desired impetus to all such efforts,” he said.

Dr Niaz said the three agreements would boost socioeconomic indicators as the rural economic transformation, provision of cheap energy and imparting much-needed technical training to the youth would greatly benefit the poor people of the country.

Speaking on the occasion, EU Ambassador Riina Kionka said Pakistan had a huge potential in the form of its people and natural resources and the three projects signed on Monday would help to harness that potential by giving the people skills to get good jobs by helping them to use sustainable techniques for agriculture and by providing them access to clean and green energy.

The KP Rural Economic Transformation project, for which 17 million euros will be allocated under one of the programmes, aims to improve rural households’ income by supporting farmers in the transition towards more sustainable and profitable agriculture, creating employment opportunities and focusing on youth and women. It is part of a larger agricultural development programme led by the KP government, in which the EU contribution will ensure impact on the most vulnerable communities in rural areas.

The Energy for Climate Resilience in Gilgit-Baltistan and Chitral district in KP programme with 30 million euros funding will create resilient hydropower facilities and support more efficient use of energy for a sustainable transition to renewable energy. It will also contribute to a more sustainable management of natural resources through a massive tree plantation programme.

Additionally, it will strengthen provincial government capacity for policy-making, with a focus on participatory planning, implementation and monitoring in energy and natural resources sectors.

The EU support for sustainable economic development through demand-driven technical and vocational education and training (TVET) with financing of 40 million euros programme builds on the EU’s long-standing support to the TVET sector in Pakistan.

It will work on the provision of adequately skilled labour with a focus on environment-friendly skills in the agribusiness and water and energy sub-sectors. The programme will make the national TVET system more effective and will give better access to skills and employment opportunities for returning and prospective migrants. Specific focus will be put on increasing availability of skilled female labour force in digital and high-tech sectors.

The EU provides Pakistan with about 90 million euros annually in grants for development and cooperation to support Pakistan’s efforts to tackle poverty, improve education, promote good governance, human rights, rule of law, and ensure sustainable management of natural resources.

Published in Dawn, January 10th, 2023