EU-Pakistan Partnership

Children during a class in Pakistan. Education is among the top funding priorities of the European Union in the country. Photo by: ECHO / CC BY-ND The European Union sees Pakistan as a key development partner in a highly unstable region. But before Pakistan could positively influence its neighbors, the South Asian country has several problems to contend with. World Bank data shows that although growth in the country’s gross domestic product has been rising steadily since 2011, gains have been meager and the country’s annual growth rates remain below the regional average. Gaps in energy infrastructure are seen as the largest impediment to growth, as electricity shortages continue to hamper economic activities. Meanwhile, weaknesses in government mechanisms, particularly in areas of taxation and resource mobilization, contribute to poor infrastructure development across multiple sectors. The transport sector remains marred by dilapidated rail and road infrastructure, while irrigation is insufficiently developed and ill-maintained. The same can be said about water storage and flood management infrastructure. Law enforcement is also in a dire state, as criminal and terrorist activities continue to prevail, posing serious threats to the country’s peace and security as well as its overall stability. Further, corruption, limited resources and weak institutional capacities prevent government bodies from enacting much-needed reforms and delivering the most basic services to its constituents. As far as achieving its Millennium Development Goals, the country failed to meet many of its targets. The EU notes that poverty levels have remained the same since 2008 due to a stagnant economy and persistent humanitarian issues. Rates of malnutrition also remain high, causing 35 percent of infant deaths, while food insecurity continues to affect 28 percent of the population — roughly 45 million Pakistanis. Basic health care is still inadequate, and child mortality and maternal health show no signs of improvement. In the education sector, school enrollment and literacy rates, particularly for girls, remain low, contributing to high unemployment levels among the youth. In 2014, the government approved Vision 2025, the country’s long-term development strategy that aims to raise Pakistan to middle-income status by 2025. The strategy document targets a number of issues, including achieving energy security, elevating growth, increasing private sector involvement, strengthening infrastructure, building competitiveness in industry and trade, enacting institutional and governance reforms, investing in social capital, and renewing confidence. The EU released its latest multiannual indicative program for Pakistan, which covers fiscal years 2014-2020, with the South Asian government’s development agenda in mind. Funding levels and priorities Pakistan will receive an estimated 653 million euros ($714.32 million) under the new program, financed through the Development Cooperation Instrument. This represents a substantial increase from the previous DCI allocation for 2007-2013, which only amounted to 398 million euros. The EU has identified three core areas for support: rural development, education and good governance. Detailed below are specific targets under each sector for the current funding period. Rural development: Interventions in this area will widen access to basic public services, increase equity among households and communities, create resilience, expand income-generating activities and help peace-building efforts, as well as create political stability in conflict-affected areas. Livelihoods will be enhanced by developing small and midsize enterprises while also lowering the cost of electricity through investments in renewable energy sources. Efforts in rural development are also expected to target women and children suffering from severe undernutrition and food insecurity through agricultural development. Education: The EU hopes to help Pakistan achieve full enrollment rates for children between 5 and 14 years, while scaling up the quality of education in both state and nonstate institutions. Interventions will also seek to increase the supply and demand for skilled labor. As such, activities will be designed to improve teaching practices, learning outcomes, evaluation systems and school management. Technical and vocational education and training will also be employed. Good governance, human rights and rule of law: Interventions in the governance sector will focus on strengthening democracy by supporting electoral processes, empowering civil society organizations and the media to demand for accountability, transparency and respect for human rights, as well as improving resource management and mobilization. Law enforcement agencies will also be targeted for support, along with legal and judicial institutions, in order to ensure compliance with international human rights instruments, labor standards and recommendations from human rights treaty bodies. Activities supporting decentralization efforts will also be undertaken under this component. Finally, the EU will allot 6 million euros for program support. This amount will aid in the preparation and implementation of EU projects by financing risk assessment and feasibility studies, consultation and planning, outreach, audits, evaluations and other supplementary activities. Devex analysis Pakistan faces a host of problems that make aid delivery across all sectors challenging. As with other fragile states, adequate support to state mechanisms and close coordination with partner organizations and stakeholders will be crucial for a successful program implementation. As such, capacity building measures will be delivered by the EU at all levels of government. The EU will also engage the government and its counterparts in planning, policy dialogues and constant coordination to streamline efforts. To improve resource management, reforms in public finance will be supported, particularly in areas of domestic revenue mobilization and transparency. Oversight mechanisms will be strengthened through audits, third-party assessments and analyses of programs. The EU also plans to support civil society and media institutions to ensure greater accountability. The EU intends to leverage the private sector in its development initiatives as well. In a recent interview, EU Commissioner for International Cooperation and Development Neven Mimica explained how partnering with the private sector can boost aid efforts by tapping into its vast resources. While there are criticisms against private sector involvement, the EU development chief believes the private sector could be the key to attaining sustainable and inclusive growth in developing countries. In the same interview, Mimica said the EU will continue to limit its sectors of engagement to just three focus areas per country to maximize the impact of its aid — a strategy that is reflected in its program for Pakistan. The EU is among the top donors to Pakistan and has been a steady source of aid for the past half-decade. Contact Delegation of the European Union to Pakistan Tel: (92-51) 227-1828 Fax: (92-51) 282-2604 Email: