ISLAMABAD - Pakistan and European Union Friday signed an agreement under which EU would provide Euro 225 million to Islamabad under the Multi-annual Indicative Programme 2011-2013 for rural and natural resource development and social welfare. Meanwhile, Pakistan and Germany signed the Summary Record of Negotiations on Development Cooperation. Germany would provide additional Euro 90 million to Pakistan for the period 2011-12. The break up of Euro 90 million revealed that Euro one million is for education, Euro 48.5 million for energy, Euro 13 million for health, Euro 9 million for governance and Euro 6.5 million for cooperation outside priority areas, while Euro 12 million for the Multi Donor Trust Fund. Federal Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh and German Federal Minister for Economic Affairs and Development Drik Niebel and Andris Piebalgs, European Commissioner for Development had signed the agreement. Talking to the media, Finance Minister Dr Shaikh said that governments revenue would increase with the help of steps taken by it in recent past. He also reflected the economic situation of the country. He was of the view that Pakistan has never compromised on social and poverty-related spending and is pursuing a strategy to promote inclusive economic growth. As a result of the stabilisation initiatives of the government, the macroeconomic indicators are showing improvement, he added. Dr Shaikh further said that international institution including World Bank, Asian Development Bank and Islamic Development Banks are monitoring Pakistans projects. He informed that Pakistan had good ties with the Donors. Drik Niebel expressed the hope that development cooperation would further enhance in the future. He expressed Pakistans resolve to further deepen and strengthen the economic and development cooperation with Germany and EU. The visiting dignitaries appreciated Pakistans commitment for sustaining the ongoing economic reforms including measures implemented to mobilise domestic resources, rationalise expenditures and reform the energy sector. They were of the view that still lot to be done in tax reforms of the country. They also were of the view after the devolution of the ministries after 18th amendment, the education, and agricultural sectors performed well. They also appreciated the role of Pakistan as frontline state war against international terrorism.