The European Investment Bank has returned to Pakistan after a decade, announcing €160 million in financing for housing reconstruction in Sindh and water supply projects in Karachi.
The funding package includes €100 million for rebuilding homes damaged in the 2022 floods in Sindh and €60 million for water quality projects in Karachi, marking a renewed financing commitment by the European Union’s lending arm.
The housing component is part of one of the world’s largest post-flood reconstruction efforts, with total investment estimated at nearly $2 billion. The programme is expected to benefit around 40 percent of rural households in Sindh.
The initiative is being implemented with support from the Government of Sindh, the World Bank, the Asian Development Bank and the Islamic Development Bank.
In Karachi, the financing will support the construction of two water filtration plants in Gharo and Pipri. The plants are expected to provide around one billion litres of clean drinking water per day and are aimed at improving resilience against floods and heatwaves, particularly for vulnerable communities.
The financing was announced during the EU Pakistan Business Forum and is backed by European Union guarantees under its Global Gateway initiative.
The European Investment Bank is the European Union’s main lending institution and one of the world’s largest multilateral financiers, with a focus on climate, infrastructure and sustainable development.
The funding forms part of the EU’s Global Gateway initiative, a €400 billion global investment plan for 2021-2027 aimed at supporting infrastructure, climate resilience and economic development.
