EU-Pakistan economic cooperation

 

  National economic cooperation:    

TRADE-RELATED TECHNICAL ASSISTANCE PROJECT (TRTA)

The project on WTO capacity-building aims to enhance the capacity of key stakeholders – government officials, business and civil society actors – in pertinent areas of WTO negotiations, as well as in the field of standards and quality control (e.g. EU and WTO requirements on sanitary and phytosanitary (SPS) measures).

Capacity-building activities was launched in 2004 for a total amount of euros 5 million. They will include among others: awareness raising and information exchange aimed at key stakeholders through seminars, networks and other relevant communication/training means (website development, publication and dissemination of easily accessible materials); training such as supporting participation in relevant trade policy courses, internships, and strengthening research centers and think-tanks.

This will be combined with a sectoral approach focusing on key sectors of importance to Pakistan’s economy and to bilateral trade relations with the EU. The textiles sector is an obvious candidate, in addition to leather, the fisheries sector and specific agricultural commodities.

Capacity-building efforts will also concentrate on topical and often complex areas of WTO negotiations, such as:

understanding the potential effects of the WTO TRIPs agreement and developing adequate policy responses at the national level; examining the effects of the post-2004 quota regime on textiles and clothing and of China’s entry into WTO for the future development of Pakistan’s exports; identifying new potential products and markets for fisheries exports and understanding the various SPS measures applied in such sectors (EU and non-EU ones).

While Pakistan has crossed for the first time the $US10 billion mark for its exports, much remains to be done to ensure that exports - and trade more generally - effectively contribute to poverty eradication, notably by ensuring that key decision-makers and business actors are able to seize the opportunities provided by bilateral and multilateral trade agreements.

 Download financing agreement press release

http://www.ipo.gov.pk/contact.php

SMALL PROJECT FACILITY

The project on TRTA will be complemented by a separate small project facility, focusing on strengthening dialogue and networking between organizations and individuals working on trade and economic-related issues in both Pakistan and the EU. This set up will directly contribute to strengthening interactions and knowledge-sharing between EU and Pakistan organizations working in a range of areas, such as regional and international trade and investment, and specific social/cultural and environmental matters. 

FINANCIAL SERVICES SECTOR REFORM PROGRAMME (FSSRP) 

The Financing Agreement for FSSRP was signed in May 2002 in Islamabad and the programme was completed in May 2007. The objectives of this budget support programme was to contribute to, and support the Government of Pakistan’s reforms in financial services by creating additional resources for the reinforcement of social sector development under the Government’s Poverty Reduction Strategy Programme (PRSP), notably through support to Micro Finance Institutions and Small & Medium Enterprises (SME).

The overall budget for this programme was €50 million comprising two parts:

1.      €45 million for budget support activities conducted in the context of the Poverty Reduction Strategy Paper and managed through disbursement of tranches on the basis of benchmarks, results and achievements.

2.      €5 million for experts' assistance focused on micro-finance, SME development and fiscal devolution at federal, provincial and district levels. This component was operational during (2004-2007) and provided support and capacity building in the areas of public finance, micro-finance and SME development. An important number of technical studies were made available thanks to this component and published in a special website for the programme which was closed in 2008. 

Major Achievements:

The programme was unique in its kind and was one of the first major budget support operations of the European Union in Asia. In difficult times after 9/11 2001, it provided flexible resources to the Government of Pakistan in support of major reforms in the financial sector, including the devolution of power to the districts, micro-finance and SME development.  

This programme together with the assistance of other development partners (World Bank, International Monetary Fund, Asian Development Bank, UK Department for International Development, Swiss Agency for Development and Cooperation) helped the Government of Pakistan in achieving the following results:

Ø      Expansion in number of Micro Finance Institutions (MFIs) and Micro Finance Banks (MFBs)

Ø      Improved access to local savings/credit

Ø      Improved Regulatory Framework

Ø      Increased effectiveness of financial service provision and outreach.

 Regional economic cooperation projects:

  ASIA PRO ECO

The Asia Pro Eco Programme aims to improve environmental performance and technology partnership in economic sectors, and promote sustainable responsible investment. It is a five-year European Union initiative, launched in 2002, based on the experience and the inputs provided by the Asia Eco Best Programme.

With an EC contribution of € 31,5 million (total budget: € 82,3 million), the main objective of Asia Pro Eco is to adopt policies, technologies and practices that promote cleaner, more resource efficient, sustainable solutions to environmental problems in Asia. The implementation concentrates on specific projects under the Call for Proposals mechanism accessible to public or non profit organisations in Asia and EU. The Programme provides support through grants. Activities such as organisation of working conferences, diagnostic studies, policy advice, feasibility studies, technology partnership and demonstration activities in the field of environment can be considered for funding under the Programme.

There are currently two deadlines for calls for proposals: 27 June 2003 for projects focusing on policy reinforcement and 3 October 2003 for projects on operational and practical dialogue.

For further information, please visit the website:

http://europa.eu.int/comm/europeaid/projects/asia-pro-eco/index_en.htm

  EU-PAKISTAN CIVIL AVIATION PROJECT

The “EU-Asian Civil Aviation Co-operation” project, which amounts to 30 million € (Rs 1.6 billion), is part of a regional programme which aims to increase the Asian awareness of the EU industry practices in Airworthiness, safety regulations and standards, Air Traffic Management and Air Traffic Control, as well as Product Maintenance and Customer Support practices. The overall objective of the project is to contribute to improved aviation safety and enable full growth potential to be met by the Asian aviation and aerospace industries.

The project will concentrate on a programme of co-operation on aviation safety by involving from the European side, the industry and regulatory authorities and from the Asian side, the industry, the operators and the regulatory authorities of the various participating countries.

The cooperation will specifically focus in the following three areas:
1) Airworthiness, with particular emphasis on co-operation towards an Aviation Safety Oversight Programme for South Asia and South East Asia; 2) Air Traffic Management
3)Product Maintenance / Customer Support.

The other countries which have endorsed the financing agreement include Bhutan, Cambodia, Laos, Nepal, the Philippines and Thailand.


Asia-Invest II

The Asia invest programme was set up primarily to assist small and medium-sized European companies in investment decisions and matchmaking with potential Asian partners. This is particularly relevant for Pakistan where small and medium-sized enterprises (SMEs) face a number of challenges in accessing markets abroad, developing direct relationships with foreign buyers and complying with EU standards and requirements for exports.

The second phase of the Asia-Invest Programme - Asia-Invest II from 2003-2007 - was launched in March 2003, with a first deadline for new proposals in June 2003. Project proposals will cover three main areas of activities: business-to-business matchmaking, Asian private sector development, and capacity-building for Asian intermediaries and networking with EU counterparts.

In Pakistan, a study on business cooperation and investment will be conducted in the second half of 2003. The purpose is to draft a ‘Business Cooperation and Investment Guide’ to facilitate business cooperation between Pakistani and European SMEs, identify new business opportunities, and reinforce the Pakistani private sector. This study is timely as new business opportunities may arise in Pakistan from the current privatization process, as well as new key export sectors identified by the Export Promotion Bureau (e.g. engineering goods, information technology, fisheries and chemicals), and reforms in the textiles and clothing sector linked to the phasing-out in 2005 of the quota regime.

  You may go to the following website for more information:
 
http://europa.eu.int/comm/europeaid/projects/asia-invest


Asia IT&C

The Asia Information Technology and Telecommunications programme (Asia – IT&C) aims to strengthen the technical links between Europe and Asia and increase the integration of more Asian countries into the global information society.

The total budget for Asia IT&C is 35 million Euro, of which around 23 million Euro has been used to fund 81 projects. There will be two further deadlines for new proposals in May and September 2003.

Pakistan is now involved in five Asia IT&C projects, based in Lahore (3 projects), Karachi (1 project) and Peshawar (1 project). These projects are:

E-Learning Knowledge Transfer project, implemented between the Pakistan Virtual IT University (PVITU) in Lahore and the University of Central Lancashire (UK). The project aims to bring together European institutions and organizations with knowledge and experience of e-learning in higher education, vocational education and lifelong learning to share information with, and learn from, PVITU. The activities will concentrate on identifying best practices in the field of e-learning, running pilot courses in vocational and academic areas and creating new networks.

IT&C skills for a more efficient micro-finance sector in South Asia, implemented by Planet Finance in three Asian countries: Pakistan, Nepal and India. The overall objective of the project is to alleviate poverty and encourage private enterprise in the South Asian countries identified through the use of IT&C tools in the existing micro-finance institutions (MFIs). MFIs will thus be able to access on-line services, including practical and cost-effective information and management tools. Activities include provision of IT&C tools, in-the-field and on-line training, creation of regional and national gateway, seminars, conferences and an IT&C/micro-finance EU tour.

Punjabi language and transliteration tool (PLATT), implemented between Lok Sujag in Lahore and Preston College (UK). This project aims to develop a transliteration tool for the Panjabi language that enables e-comprehension between three different scripts, namely Gurmukhi (East Punjab, India), Shahmukhi (West Punjab, Pakistan) and Roman (Europe). Activities will concentrate on exploring IT solutions for common writing procedures of different scripts, thus enabling EU and South Asian organizations to have a common basis for communication and maintain lasting relationships, which would otherwise not be possible.

On-line navigational environmental city information (Asia city), implemented by the National Technical University in Athens and 5 Asian countries, including Pakistan. The objective of this project is to develop contacts and connections between five Asian countries and European IT&C initiatives in the field of city-info mobility by establishing task forces, workshops and other relevant events. The main output of the project is a joint strategy in the field of IT technology for ‘on-line navigational city information’.
IT facilitated adaptation of EFQM based total Quality Management Model, implemented between Spain and three Asian countries (Pakistan, Malaysia and India). The AsiaQual project aims to set up a support infrastructure in Asia and in Europe for helping SMEs to implement a Total Quality Management (TQM) approach. The basic idea is to set up a network of IT centers in both Europe and the three Asian countries, along the lines of European Foundation QM model.

 
You may go to the following website for more information:
 
http://europa.eu.int/comm/europeaid/projects/asia-itc/html/main.htm
 Asia IT & C projects in Pakistan

Asia Urbs

Asia Urbs offers the possibility of cooperation between municipal authorities. Asia Urbs has two deadlines for new proposals in May and September 2003.

There are currently two on-going projects in Pakistan. The first one is the study being conducted by the Defence Housing Society in a coastal suburb of Karachi. This study envisages to examine current waste management practices in the area, and draw on technical and economic data to develop a project on waste management to counter environmental and health risks, notably to the urban poor and squatters. The project would be designed to be easily transferable to other areas of Karachi, and elsewhere in Pakistan. The European partners in this initiative are Gummersbach from Germany La Roche-sur-Yon from France.

The other one is also a study conducted by the Peshawar Municipal Corporation to develop an integrated response to the pressing needs for sanitation and solid waste management in Peshawar. Technical expertise was be provided through exchanges between the project partners. The impact of the project would be enhanced through communications activities in schools, local media, and community-based organizations in the second phase of the project. Direct links between local groups in Peshawar and in Luton would develop capacity for locally based decision-making bodies. The European partners in this project were Lutonbourg U.K and Rotterdam Municipality, Netherlands.

There is increasing scope for assisting local municipal authorities in connection with the devolution process through strengthening the political, cultural and economic potential for decentralized cooperation, with Europe focusing on the sharing of know-how and techniques.


Asia Link

The Asia link programme encourages and develops links between European and Asian institutions of higher education, thus facilitating the exchange and pooling of experiences among the academic community. A total of Euro 40 million has been allocated to fund the programme over a five year period (until the end of 2005). Forty-two projects were selected under the first call for proposals and a second call for proposal is open, with deadlines in May and September 2003.

Projects have a focus in the area of human resource development, curriculum development and institutional and systems development. About 117 European and Asian higher education institutions are participating in this multilateral networking initiative and cover different subject areas of EU-Asia economic cooperation such as agriculture, business/economics, engineering, environment/sustainable development, etc.

  You may go to the following website for more information

  http://europa.eu.int/europeaid/projects/asia-link
 

Click here for summary of projects