1.Background: Agreements in force as of November 2013 The Government of Italy and the Government of the Islamic Republic of Pakistan share a long tradition of positive exchanges where ODA and Technical Assistance have not a minor role. In spite of this, an updated General Bilateral Agreement of Cooperation does not exist as such. In view of the policy that led to conceive a development swap for the Pakistani debt with Italy, and also considering the ODA financial allocations of the last five years; this may be regarded as the first and urgent requirement to be satisfied. There is hardly notice of investments prior to 1984, except for the Tarbela hydropower dam in the Indus River (Haripur District, Khyber Pakhtunkhwa), one of the largest dams to date, whose construction was carried out with the participation of the Italian engineering and construction operators. Starting from 1984 and up to 1990 two major agricultural projects were executed through the Pakistani Agricultural Research Centre (PARC): - Crop Maximization Program, for the improvement of the agricultural productivity through enhanced mechanization. The project included the provision of about fifty trucks and a hundred tractors, agricultural tools and fertilizers. It was identified within the framework of actions in support of Pakistan to ease the pressure of the Afghani refugees’ flows; - Support to Pakistan Fruit cultivation, through introduction of suitable genetic varieties and improvement of agricultural practices and techniques. 2. Bilateral InstrumentPakistan-Italy Debt Swap Agreement – PIDSA The total allocated budget amounts to approx. 80 million Euro, distributed over more than 30 projects. It has a homogeneous geographical distribution across the Country, and a major focus on the provincial border areas with Afghanistan. Main sectors are health and education (20% of the total share); about 27% of investments have been devoted to post-flood infrastructural projects. Other investments are devolved to local development: agriculture, environment and microfinance; • Emergency Aid Emergency Aid has been focusing to areas affected by the 2005 earthquake and by floods. Since 2006 a total amount of 5,2 million Euros was disbursed to implement humanitarian aid programmes with technical support of the Italian NGOs ACTION AID, CESVI, INTERSOS and ISCOS. Programmes aimed at building or rehabilitating affected schools, health centres and power infrastructures, at resuming agricultural activities, rural economy and household income and at alleviating children malnourishment. Moreover, soon after the 2009 and 2010 floods, the Italian Government sent to Pakistan 4 humanitarian flights, carrying health kits, food aid, tents and water and sanitation material (almost 1,3 million Euros). Finally, to link relief to development and to strengthen sustainability of activities carried out in the frame of the “Emergency Program to Support the Flood Affected Population”, the Italian Cooperation recently funded a new humanitarian aid programme of a total amount of 1 million Euros. • Rural Development A total investment up to 62.5 million Euro has been carried out through the instrument of soft-loan (60 M Euro), complemented with a grant of 2.5 M Euro. • Rural development investments account for 40 M Euro allocations; these are executed by the Pakistan Poverty  Alleviation Fund(PPAF); • 20 M Euro are allocated for technical and vocational training. This program has to be defined and its institutional setup finalized; • A 2.4 M Euro grant is supporting a regional olive-tree cultivation program, for the improvement and development of olive oil production in Afghanistan, Nepal and Pakistan. The 0,771 M Euro invested in Pakistan is connected with the homologous olive-tree scheme. A companion investment supported by a grant of 1.35 M Euro is allocated for a technical assistance project in support to fruit farming and in the Swat Valley; • Post-Flood Rehabilitation and Reconstruction. A total of 57.75 million Euros have been allocated through help credit support for the post-flood rehabilitation and reconstruction administered by the Government in the framework of the “Citizens Damage Compensation Programme.  3. Multilateral Instrument A 4 million Euros support investment is ongoing as Italy’s contribution to the social protection and community development multilateral trust fund for Pakistan (KP/FATA/Balochistan’ MDTF). Several contributions were allocated to the 2010 Post-Flood humanitarian call through international agencies, equalling an overall amount of approx. 9.5 million Euros.