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ISLAMABAD: The European Investment Bank (EIB) has signed its first credit financing agreement in Pakistan&rsquo;s water sector since 2015, marking renewed development engagement between Pakistan and the European Union, according to an official joint statement issued by Pakistan&#39;s Foreign Office.&nbsp;The agreement and broader cooperation were discussed during the 15th EU-Pakistan Joint Commission meeting held in Brussels, co-chaired by Muhammad Humair Karim, secretary at Pakistan&rsquo;s economics affairs ministry, and Paola Pampaloni, acting managing director for Asia and the Pacific at the European External Action Service.&nbsp;According to the statement, Pakistan briefed the EU on key regional matters, including the situation in Jammu and Kashmir and the Indus Waters Treaty, underscoring the importance of resolving disputes &ldquo;peacefully and in accordance with international law and the principles of the UN Charter.&rdquo;&nbsp;Both sides also exchanged views on global developments, including Gaza, where they affirmed support for a comprehensive plan to end the conflict, &ldquo;stressing the need to uphold the ceasefire and move toward a two-state solution,&rdquo; the statement said.&nbsp;The security situation in Afghanistan, threats emanating from its territory, and the need for sustained humanitarian assistance were also discussed.&nbsp;Human rights and governanceThe EU welcomed Pakistan&rsquo;s election to the United Nations Human Rights Council and acknowledged progress made in aligning the application of the death penalty with international standards, while encouraging &ldquo;further steps in this direction,&rdquo; according to the foreign office.&nbsp;Discussions covered freedom of expression and media, judicial independence, freedom of religion or belief, anti-Muslim hatred, and the rights of minorities and vulnerable groups.&nbsp;The EU reiterated its commitment to supporting Pakistan&rsquo;s efforts to safeguard fundamental freedoms, including the rights of women, children, laborers, and migrants.&nbsp;Trade and GSP+EU-Pakistan trade relations featured prominently, with both sides reviewing market access challenges and cooperation under the Generalized Scheme of Preferences Plus (GSP+).&nbsp;The statement said the two sides reviewed follow-up actions from the GSP+ Monitoring Mission held from November 24 to December 3, including preparations for the upcoming GSP report and Pakistan&rsquo;s re-application under the new GSP regulation.&nbsp;Both emphasized the importance of &ldquo;a strong multilateral trading system.&rdquo;&nbsp;They also agreed to improve the overall business environment and confirmed plans to advance this work at the High-Level EU-Pakistan Business Forum scheduled for April 28-29, 2026, in Islamabad.&nbsp;Development, climate, and education cooperationPakistan welcomed continued EU support for climate resilience under a Team Europe approach. The EU outlined planned projects for 2025-2027 and updated Pakistan on its Global Gateway strategy.&nbsp;Both sides agreed that priority areas under the Multiannual Indicative Program, green inclusive growth, human capital development, and governance, remain aligned with Pakistan&rsquo;s national development agenda.&nbsp;The meeting also reviewed cooperation in education, science and technology, digitalization, and connectivity.&nbsp;The growing participation of Pakistani students in the Erasmus Mundus program was noted, alongside plans to explore research collaboration under Horizon Europe.&nbsp;Progress under the EU-Pakistan dialogue on migration and mobility was also reviewed. The EU welcomed Pakistan&rsquo;s steps to counter irregular migration and migrant smuggling, while both sides stressed that returns must be &ldquo;safe and dignified.&rdquo;

Economy

Foreign Affairs

Climate & Environment

Pakistan and the EU renewed development, trade, and climate cooperation at Brussels talks, marking new EIB financing, GSP+ engagement, and discussions on regional, human rights, and migration issues.

EU, Pakistan renew development, trade, climate cooperation at Brussels talks

ISLAMABAD: Pakistan&rsquo;s Minister of Commerce Jam Kamal Khan told a European Parliament delegation that removing duty concessions on ethanol exports under the Generalised Scheme of Preferences Plus (GSP+) is damaging rural livelihoods and farming communities. The minister outlined how this change has hurt rural economies reliant on ethanol production from sugarcane molasses. He urged the EU to reconsider the decision to protect these vulnerable communities. GSP+ (Generalised Scheme of Preferences Plus) is a special incentive arrangement by the European Union that grants tariff reductions to vulnerable developing countries in exchange for commitments to implement 27 core international conventions on human rights, labor rights, environmental protection, and good governance. This allows these countries to export goods to the EU with zero or lower tariffs on most of their products, promoting sustainable development and integration into the global economy. The meeting was held at the Ministry of Commerce in Islamabad, as per the Press Information Department. It involved a high-level delegation from the European Parliament&rsquo;s Committee on Development led by Lukas Mandl. Discussions covered Pakistan&rsquo;s achievements under the GSP+ scheme, which supports sustainable trade, human rights, labor reforms, climate action, and institutional strengthening. The commerce minister stated how Pakistan secured a seat on the United Nations Human Rights Council for 2026&ndash;2028 and received &ldquo;A status&rdquo; accreditation from the Global Alliance of National Human Rights Institutions for its National Commission for Human Rights. The government passed key legislation, including the Islamabad Child Marriage Restraint Act 2025. It also introduced commissions to protect journalists and minorities and adopted a policy promoting interfaith harmony. On the economic front, the minister reported steps to attract foreign investment. The central bank&rsquo;s interest rate has dropped from 22% to 11%. The government is focusing on industrial growth, skill training, and empowering the country&rsquo;s youth, with over 60% of the population under 30 years of age. The minister invited EU companies to invest in sectors like agriculture, food processing, seed development, manufacturing, small and medium enterprises, and e-commerce. He also raised a second trade concern: the Geographical Indication (GI) registration of basmati rice. The issue of GI registration for basmati rice in the EU involves a dispute between India and Pakistan, both of which have applied for protected status. The EU has been urged to make a fair decision, as Pakistan has opposed India&#39;s 2018 application, arguing that it would negatively impact Pakistan&#39;s exports, given that both countries produce and trade Basmati. Officials also briefed the delegation on Pakistan&rsquo;s recent accession to the Madrid Protocol on Trademarks and the Marrakech Treaty for the Visually Impaired. Reforms on patents and copyrights are underway to strengthen intellectual property laws and improve investor confidence. The European parliamentarians praised Pakistan&rsquo;s transparency and reform efforts. They discussed areas for improved cooperation, including global peace, education, and economic ties. The commerce minister sought EU support on regulatory compliance related to sustainability and climate standards, including the Carbon Border Adjustment Mechanism and Corporate Sustainability Due Diligence Directive. The talks ended with both sides committing to deepen trade, investment, and development cooperation under the GSP+ framework.

Ethanol production facility in Pakistan (pepl.pk)

Business

Pakistan's Commerce Minister discussed GSP+ achievements, raised concerns over ethanol export duty cuts and basmati rice GI registration, and sought EU support for sustainability and trade reforms.

Articles tagged with "Generalised Scheme of Preferences Plus (GSP+)"

EU, Pakistan renew development, trade, climate cooperation at Brussels talks

Pakistan farmers hurt by EU duty concession cuts on ethanol: minister