EU unlocks €160m Pakistan financing deal for flood housing and Karachi water projects

Pakistan is set to receive €160 million in external financing from the European Union, with formal agreements scheduled for signing on April 28 between the Government of Pakistan and the European Investment Bank (European Investment Bank).

The package is structured around two major intervention areas: post-flood rehabilitation in Sindh and water infrastructure improvement in Karachi, reflecting a dual focus on recovery and urban service delivery.

The largest share of the financing, €100 million, has been allocated for flood-affected areas in Sindh. According to the funding framework, the amount is intended to support the construction of approximately 2.1 million housing units aimed at the rehabilitation of displaced communities.

The remaining €60 million will be channelled into Karachi-based projects targeting improvements in water supply systems and water quality, with a focus on expanding access to safe drinking water for urban residents.

Officials describe the initiative as a combined recovery and infrastructure support package, linking large-scale housing rehabilitation in flood-hit regions with essential utility upgrades in Pakistan’s largest city.