EU grants €13 million to Pakistan to improve fiscal policies

The European Union agreed to provide €13 million grant to Pakistan improve its fiscal policies and budget preparations, reported Geo News on Friday.

The agreement was signed in Islamabad in the presence of Minister for Economic Affairs Hammad Azhar and the grant will be provided under EU’s Public Financial Management Support Programme.

Secretary Economic Affairs Division, Syed Pervaiz Abbas, signed the agreement on behalf of Pakistan, while the EU’s ambassador to Pakistan, Androulla Kaminara, signed it on behalf of the regional bloc, said the announcement.

Speaking on the occasion, Azhar shared that Pakistan is maintaining its socio-economic partnership with the EU. He added that the government’s major priority is to bring about economic stability in the country.

“We have to make socioeconomic progress a reality in the country,” remarked the minister.

The announcement of the agreement comes after the International Monetary Fund (IMF) and Pakistan reached a staff-level agreement with Pakistan on the policies and reforms needed to complete the second review of the authorities reform program supported under the EFF.

The International Monetary Fund (IMF) and Pakistan reached a staff-level agreement "on policies and reforms needed to complete the second review of the authorities reform program supported under the EFF," read a statement from Ernesto Ramirez Rigo, the IMF's Mission Chief for Pakistan.

The policies and reforms will be subject to approval by the IMF management and Executive Board which is expected in early April. "Completion of the review will enable disbursement of SDR 328 million (around US$450 million)," read the statement from Rigo.