ISLAMABAD, May 22: The European Union (EU) Commissioner for External Relations Chris Patten has said that he is visiting Pakistan and India to assess the security situation in the region.

“In the next couple of days, I will be talking on regional issues both geographical and diplomatic directions,” he further stated.

Speaking at a joint news conference with Finance Minister Shaukat Aziz after having signed 50 million euro grant for Pakistan, he said here on Wednesday that he would also visit Afghanistan during his current trip to the region. He said issues concerning the United Nations Security Council’s 1373 resolution against terrorism, which both Pakistan and EU had signed, would come up for discussion.

When asked how did he see the increasing tension in the region with special reference to massive Indian military build-up on Pakistan’s borders, Patten said he still had to discuss these issues in Islamabad and New Delhi.

He said that matters pertaining to “democratic accountability” and increasing trade and economic cooperation between EU and Pakistan would also be discussed.

Mr Patten and Finance Minister Shaukat Aziz signed a 50 million euro financial agreement and launched a five-year project to promote reform of the financial sector in Pakistan.

“The EU is contributing 50 million dollars to underpin the Pakistan’s Poverty Reduction Strategy and specifically, to support its efforts to upgrade Pakistan’s financial services sector,” he said.

“Our assistance will focus on the rural poor, better access to banks and micro finance will help create jobs in rural areas and support Small and Medium Enterprises (SME’s) development. Jobs and growth are positive answers to extremism and will contribute to the stability of Pakistan and the region,” he added.

The programme is part of a comprehensive package of assistance from the EU in response to Pakistan’s support in the fight against terrorism. Other measures included trade concessions in the area of clothing and textiles as well as accelerated disbursements under an ongoing education sector programme. “The initiative for this package dates back to my visit to Pakistan in September 2001, another example of a promise delivered.”

The EU financial services programme will focus on the regulatory and institutional issues which remain to be addressed in micro finance and financial services for small and medium enterprises.