Pakistan and EU sign €65m grants as regional leaders seek Middle East de-escalation

On the sidelines of the United Nations General Assembly, several high-level diplomatic meetings addressed regional instability in the Middle East and economic development in Pakistan.

Pakistani Prime Minister Shehbaz Sharif met with Iranian President Masoud Pezeshkian to urge de-escalation of the conflict between the United States and Iran. Sharif emphasized the need for diplomacy to protect global shipping in the Strait of Hormuz and reaffirmed Pakistan’s role as a mediator following the Islamabad Memorandum of Understanding.

Lebanese Prime Minister Nawaf Salam also met with President Pezeshkian, stating that Lebanon does not wish to serve as an arena for regional wars. Salam called for respect for Lebanese sovereignty, the cessation of military support for Hezbollah, and the integration of militias into the state military to ensure national stability.

Separately, Pakistan and the European Union signed three grant agreements totaling €65 million. These funds are designated to support investment facilitation, energy and environmental resilience in Khyber Pakhtunkhwa, and the rule of law and business environment across Pakistan.