The 27-nation bloc agreed at a summit in Brussels to grant Pakistan immediate, although temporary, import duty relief both as a humanitarian gesture and as a way to help the country prevent extremists from exploiting economic instability.

“The severity of this crisis demands an immediate and substantial response,” the EU said in a declaration.

The EU already has committed millions of euros in aid to help Pakistan recover from the devastation. The final details of which exports will be covered and how long the waiver will last will be worked out by the European Commission by October.

The special US representative for Afghanistan and Pakistan meanwhile said Thursday the world will only be able to fund around 25 percent of the tens of billions of dollars needed to rebuild Pakistan and its government will have to make up the shortfall.

Richard Holbrooke said America would not condition its assistance to the country, but warned that the US Congress might not be generous if it felt that Pakistan was not taxing its own citizens enough.

Pakistan's rich have traditionally not paid much tax on their income or their property — either because they evade them or are exempt — and the country's collection rates are among the lowest in the world.

Critics have pointed to this shortage of revenue in recent weeks as Pakistani leaders have sought international aid. The country's economy is surviving on international assistance, and the floods are expected to badly slow economic growth further.

“I don't want to withhold money they need, but I think we have to be clear that Congress is going to be reluctant to give money if the money is filling in a gap because people are not paying taxes,” said Holbrooke during a visit to Karachi.