Economic relations
The EU supports Pakistans integration into the global economy. This is being achieved
by:
furthering bilateral trade,
promoting direct investment,
supporting institution building, and
Defending human rights, including the implementation of international labor standards.
The EU also supports the Pakistan Governments on-going economic reform agenda in
consultation with the international financial institutions.
In addition, the EU is planning to expand its dialogue and cooperation with Pakistan in
relation to energy issues.
Trade relations
The EU is one of Pakistan's largest trading partners and the biggest market for Pakistani
exports. Overall EU-Pakistan trade reached 10.49 billion in 2015, up by 20.1% from
2013.
Pakistan's exports to the EU are heavily dependent on textile and clothing products,
which account for 76% of all exports.
The main imports from the EU are machinery and appliances (25.5%), followed by
transport equipment (16.5%), and chemicals & pharmaceuticals (15.5%).
In May 2007 the EU and Pakistan set up a Sub-Group on Trade under the Pakistan-EU
Joint Commission.
Since January 2014, Pakistan has benefitted from the EUs Generalized System of
Preferences (GSP), which has boosted Pakistan's exports to the EU.
Along with its member countries, the EU provides Pakistan with about 700 million per
year for development and humanitarian assistance.
Among other issues, the EU supports Pakistan in its efforts to tackle poverty, increase
literacy, reduce child mortality, improve maternal health, combat major diseases, and
ensure environmental sustainability.
A Multi Annual Indicative Programme (MIP) details the EU cooperation priorities with the
Pakistan for the years 2014-2020.
The assistance provided through the EU Delegation focuses on delivering long-term
support for Rural Development, Education and Governance. (See entries below for more
details).
Rural development
Through the MIP, the EU is contributing more than 340 million to rural development in
Pakistan.
The funding programme focuses on boosting economic growth and livelihoods in some
of Pakistans poorest areas.
Efforts will therefore be made to:
Improving access to and completion of basic and secondary education for children,
while reducing gender and regional differences in provision.
Improving the quality of education by introducing better teaching and materials;
assessment systems and school management practices will also be upgraded.
Improving the productivity and employability of workers by introducing relevant
technical and vocational training programmes.
Humanitarian aid
Since 2009, the EU has provided Pakistan with 537 million of humanitarian aid, including an
allocation of 21.5 million for 2016. Relief items have also been channeled to flood victims.
In 2016, the EU continued to support people affected by conflict and those suffering from
malnutrition and food insecurity, as well as Afghan refugees in the country. It offers:
food assistance,
access to safe drinking water,
sanitation facilities,
shelter,
health-care, and
protection to conflict-displaced families.