EU plans four-fold raise in aid

Published April 27, 2005

LUXEMBOURG, April 26: The European Union is planning a four-fold increase in development aid to Pakistan, raising the current 15 million euro annual aid allocation to 60 million euros a year as of 2007, senior EU officials said on Tuesday. The aid increase — which is conditional on approval by the European Parliament and EU governments — reflected the great importance the EU attaches to Pakistan as a key player in South Asia, European External Relations Commissioner Benita Ferrero-Waldner said ahead of a meeting with Foreign Minister Khurshid Mehmood Kasuri in Luxembourg on Wednesday.

Ferrero-Waldner said the EU recognized the strategic importance of Pakistan’s role in maintaining regional stability and in the fight against terrorism.

The EU external relations chief also lauded Pakistan and India for taking courageous steps to strengthen their relationship, saying recently-agreed confidence building measures by the two sides would help bilateral ties but also promote stability in the entire South Asian region.

The EU will use the meeting in Luxembourg to encourage Pakistan to continue its policy of “enlightened moderation”, officials added.

Having played a prominent role in supporting Pakistan through a challenging period, Ferrero-Waldner said the European Commission would now like to consolidate this support by substantially increasing our aid to Pakistan in the coming years.

The funds would be used to promote Pakistan’s economic development, she said, with special attention being given to strengthening cooperation in education as well as regional development in the Frontier and in Balochistan.

The commissioner added that she would be sending an expert mission to Pakistan in mid-2005 to discuss how the additional aid funds could best be deployed.

“We welcome the EU’s indication of enhanced aid”, Pakistan’s envoy to the EU Saeed Khalid told Dawn, adding that the EU and Pakistan would work together to determine areas and projects to be funded by the Union.

However, Ferrero-Waldner’s plans require approval by the European Parliament and EU member states. Release of the funds is also conditional on the adoption of a new EU multi-annual spending plan currently under discussion by EU governments, a move which could further delay disbursal of the aid.

Islamabad is expected to urge therefore that the EU should be generous in both words and actions by anticipating the distribution of increased aid and giving Pakistani textiles and clothing exports duty-free access to the EU market.

The ministerial meeting in Luxembourg will be attended by the country’s foreign minister, Jean Asselborn, and EU High Representative for Common Foreign and Security Policy, Javier Solana.

Luxembourg is current president of the EU.

The ministerial talks are being held despite recent tensions between Islamabad and the European Parliament over the EU assembly’s decision to boycott talks with a Pakistani senate delegation because it included Maulana Samiul Haq.

The Parliament accused Maulana Haq of belonging to a group with pro-Taliban convictions.

But Ambassador Saeed Khalid said the EU and Belgium continued to be interested in promoting parliamentary contacts with Pakistan.

A delegation from the Pakistani assembly is currently in Brussels for talks with Belgian parliamentarians.

Opinion

Editorial

A difficult story
Updated 12 Jun, 2026

A difficult story

Unless productivity becomes the dominant target of economic policy, Pakistan will continue to oscillate between crises and fragile recovery.
Rough waters
12 Jun, 2026

Rough waters

AMONGST the key potential triggers for fresh conflict in South Asia is water. The Indian state is behaving in an...
Politicised football
12 Jun, 2026

Politicised football

ALMOST three-and-half years since Lionel Messi led Argentina to FIFA World Cup glory, the latest edition of...
GB polls’ aftermath
Updated 11 Jun, 2026

GB polls’ aftermath

The new administration must address the region’s issues proactively.
Peace in retreat
11 Jun, 2026

Peace in retreat

THE ceasefire announced in April was supposed to create space for negotiations. Instead, it has been repeatedly...
A few good men
11 Jun, 2026

A few good men

IT was a brave move, no doubt. This Tuesday, in the land of the Afghan Taliban, a few good men decided to take a...