ISLAMABAD - The fifth round of the Sub-Group on Development Cooperation between Pakistan and the European Union was held here, wherein European Union has announced to provide 180 million euros for development projects in Pakistan.

The Pakistani delegation was headed by Additional Secretary, Economic Affairs Division, Ministry of Finance, Revenue, Economic Affairs & Statistics and the European Union delegation was headed by Dirk Meganck, Director Asia, Central Asia, Middle-east/Gulf and Pacific in EuropeAid in the European Union.

The Development Cooperation dialogue between Pakistan and European Union takes place in the context of the Co-operation Agreement between the EU and Pakistan of 2004. It may be noted that the meeting of the sub-group was preceded by signing of two agreements between Government of Pakistan and European Union. The first agreement is “KP District Governance and Community development” worth €80 million which will provide budget support, technical assistance and community mobilization in 6 selected districts of Malakand.  The programme will introduce Output Based Budgeting (OBB) to 6 districts of Malakand providing fiscal space for challenge fund community driven development.

The second agreement is Co-financing by European Investment Bank for “Keyal Khwar Hydropower Project” up to €100 million credit financing. The project is carried out together with Germany KfW.

The Pakistan-European Union Development Cooperation dialogue was held in a friendly and conducive atmosphere, with an exchange of views on a wide range of matters of mutual interest. The agenda for the sub-group meeting provided for a review of European Union’s ongoing programmes, implementation status, issues/bottleneck and more significantly focal sectors & modalities pertaining to European Union’s Cooperation Programme 2014-2020.  Both parties agreed that ownership by Pakistan of EU-funded development projects is key to achieving sustainable outcomes.  They also agreed that promoting sound public financial management (PFM) is essential for successful cooperation. This Sub-Group reports to the Pakistan-European Union Joint Commission which is expected to meet in early 2014.