Pakistan and the European Union Friday signed an agreement whereby Pakistan would be given €225 million to Pakistan under the Multi-Annual Indicative Programme 2011-2013 for rural and natural resource development and social welfare.
Meanwhile, Pakistan and Germany signed the Summary Record of Negotiations on Development Cooperation. According to the agreement, Germany would provide additional Euro 90 million to Pakistan for 2011-12. As per the break-up of €90 million, €1.0 million is for education, €48.5 million for energy, €13 million for health, €9.0 million for governance and €6.5 million for cooperation outside priority areas, including €12 million for the Multi Donor Trust Fund.
Federal Minister for Finance and Economic Affiars Dr Abdul Hafeez Shaikh and German Federal Minister for Economic Affairs and Development Drik Niebel and Andris Piebalgs, European Commissioner for Development had signed the agreement. Speaking to the media, Finance Minister Dr Shaikh said that government’s revenue would increase with the help of steps taken by it in recent past. He also reflected the economic situation of the country.
He was of the view that Pakistan has never compromised on social and poverty related spending and is pursuing a strategy to promote inclusive economic growth. “As a result of the stabilisation initiatives of the government, the macroeconomic indicators are showing improvement”, he added. Dr Shaikh also said that international institution including World Bank, Asian Development Bank and Islamic Development Banks are monitoring Pakistan’s projects. He informed that Pakistan had good ties with the donors.
Drik Niebel expressed the hope that development cooperation would further enhance in the future. He expressed Pakistan’s resolve to further deepen and strengthen the economic and development cooperation with Germany and EU. The visiting dignitaries appreciated Pakistan’s commitment for sustaining the ongoing economic reforms including measures implemented to mobilize domestic resources, rationalise expenditures and reform the energy sector. They were of the view that still lot to be done in tax reforms of the country.
They also were of the view after the devolution of the ministries after 18th amendment, the education, and agricultural sectors performed well. They also appreciated the role of Pakistan as frontline state war against international terrorism.
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