ISLAMABAD, Dec 12: The European Union (EU) has said it is ready to help Pakistan in achieving equitable economic growth, but ruled out the possibility of providing a cash grant to the country.

“Handing over cash grant is not something the EU is involved in and Pakistan has also not asked for it”, Jan De Kok, Head of the delegation of the European Commission in Pakistan said while speaking at a press conference along with Daniel Jouanneau, French Ambassador in Pakistan on Friday. France currently holds the presidency of the European Union.

The press conference was meant to launch the first edition of Blue Book for Pakistan, presenting an insight into the development cooperation between Pakistan and the European Union.

Kok said the International Monetary Fund (IMF) facility had been extended to Pakistan and the EU could get involved in the budgetary support.

He said EU was Pakistan’s largest export market. EU-Pakistan trade in 2007 was 7.1 billion euros. Pakistan’s exports to EU formed 20 per cent of its total exports.

EU was Pakistan’s largest Official Development Assistance (ODA) grant donor.

He said the Pak-EU Joint Commission would be meeting in Brussels on December 17-18. The Joint Commission would discuss cooperation in trade, human rights and governance. He said it was the indication that both the countries desired to broaden their relationship.

The Head of the European Commission’s delegation in Pakistan said the EU was encouraged to see the Government in Pakistan taking more and more interest in political dialogue. He observed that it was easier to have political dialogue between civilian governments.

Replying to a question about tension between Pakistan and India in the aftermath of Mumbai blasts, he said there was a realisation on both the sides that war was not an option. “Both India and Pakistan as well as the world cannot afford a war in this region”, he remarked. He said both sides needed to talk and find out a solution.

He said there was a need to create confidence in the people and called for peaceful co-existence of the two important South Asian nations.

He said there has been no public statement or declaration by India indicating that it wanted war with Pakistan.

Responding to another question he said about giving EU market access to Pakistan, he said anti-dumping duty on Pakistan’s bed linen will be expiring in March next.

Ambassador of France in Pakistan Daniel Jouanneau while reading excerpts from the blue book said Pakistan faces many social, economic and political challenges.

The 2007 UNDP Human Development Index ranks Pakistan 136th out of 177 countries in terms of human development.

Human development outcomes in Pakistan are lower than those in many countries with similar income levels.

Expenditure on health and education as a percentage of GDP remains comparatively low. In this context, it will be difficult for Pakistan to meet its Millennium Development Goals (MDGs). Poverty is wide-spread.

It is estimated that about 38 million people live in poverty, representing almost a quarter of Pakistan’s population. Only about half of Pakistan’s population is literate and only about 50 per cent children attend primary school. Pakistan’s population growth rate of 2.1 per cent per year is one of the highest in the region.

Further, to achieve, a significant reduction in gender inequalities will be required. There are marked geographical disparities, with Punjab and Sindh are relatively more developed than the NWFP and Balochistan.

The long-standing conflict and instability in Afghanistan and resulting population movements have affected security throughout Southern and Central Asia.

The Pakistan-Afghan border area remains the scene of cross-border movements of insurgents and accompanying criminal activities such as drug-trafficking.

He said since 2001, EU policy was to stay constructively engaged with Pakistan and to make a significant and visible engagement, both in political and economic terms. Initiatives include resumption and upgrading of political dialogue, signature of a third generation cooperation agreement in November 2001, as well as additional development assistance.

The French Ambassador said Pakistan’s relations with the EU were influenced by its important role as partner in the fight against terrorism. Pakistan is located in a region of crucial interests to the EU and its security. An important means of the EU Member States and the European Commission to assist in this process is by way of supporting Pakistan in reducing poverty and promoting good governance.

By assisting to tackle poverty, improving education and creating job opportunities, the EU is helping Pakistan in addressing some of the root causes of conflict, terror and drug abuse.

Stability can only be achieved an sustained through democracy and respect for fundamental human rights and freedoms. In Pakistan, the EU member states have consistently emphasized the importance of democracy, respect for human rights and the rule of law through common statements by the EU Presidency.