The European Union will provide 13 million Euros to Pakistan for improving its fiscal policies and budget preparation.

The agreement was signed on Friday in Islamabad in the presence of Minister for Economic Affairs Hammad Azhar, who said: "We have to make socioeconomic progress a reality in the country".

The announcement of the grant, which will be provided under EU’s Public Financial Management Support Programme, comes after the IMF and Pakistan reached a staff-level agreement on the fiscal policies and reforms that are required for the loan programme, dubbed as the Extended Fund Facility (EFF).

Secretary Economic Affairs Division Syed Pervaiz Abbas signed the agreement on behalf of Pakistan while EU Ambassador to Pakistan Androulla Kaminara signed it on behalf of the European regional bloc, said an official statement.

Azhar, on the occasion, said that Pakistan is maintaining its socio-economic partnership with the EU. The government’s major priority is to bring stability to country's economy, he added.