The European Investment Bank’s development arm, EIB Global, has committed €160 million to support Pakistan’s recovery and infrastructure development, marking its return to the country after a decade. The funding will help rebuild flood-damaged homes in Sindh province and improve access to clean water in Karachi, aligning with broader efforts to strengthen climate resilience and sustainable development.
A €100 million loan will support a large-scale housing reconstruction initiative in Sindh, aiming to rebuild approximately 2.1 million rural homes damaged by the devastating 2022 floods. The nearly $2 billion programme targets about 40% of rural households in the province and emphasises community-led rebuilding aligned with resilience standards to better withstand future climate-related disasters.
An additional €60 million loan will fund water infrastructure improvements in Karachi through the Karachi Water and Sewerage Corporation. The project will establish two energy-efficient filtration plants in Gharo and Pipri, enabling the supply of around 300 million litres of clean drinking water daily—enough to serve approximately 2.2 million residents in the country’s largest city.
The financing agreements were announced during an EU–Pakistan business forum in Islamabad and form part of the European Union’s Global Gateway strategy, which aims to mobilise €400 billion in global investments between 2021 and 2027. Officials from Pakistan and the EU highlighted the initiative’s role in improving living conditions, enhancing climate resilience, and strengthening long-term economic cooperation.
The Sindh housing programme is also supported by multilateral partners including the World Bank, the Asian Development Bank, and the Islamic Development Bank. Together, these efforts aim to ensure inclusive recovery, promote sustainable infrastructure, and expand access to essential services for vulnerable communities across Pakistan.
