European Investment Bank returns to Pakistan with €160 million for housing, water projects

The European Investment Bank has announced its return to Pakistan after a decade, committing €160 million in financing for housing reconstruction in Sindh and water sector projects in Karachi.

Out of the total package, €100 million has been allocated for climate-resilient reconstruction of around 2.1 million homes in Sindh affected by the 2022 floods. The remaining €60 million will support water quality improvements in Karachi.

The financing, backed by European Union guarantees, was announced during the High-Level EU-Pakistan Business Forum. A formal agreement is expected to be signed at a later stage.

The Sindh housing initiative is part of a larger reconstruction programme valued at nearly $2 billion, aimed at rebuilding homes in flood-affected rural areas. The programme is expected to benefit around 40 per cent of rural households in the province and is being implemented with support from the Government of Sindh, World Bank, Asian Development Bank and Islamic Development Bank.

In Karachi, the funding will be used by the Karachi Water and Sewerage Corporation to construct two filtration plants in Gharo and Pipri. These facilities are expected to supply about one billion litres of clean drinking water per day.

The projects fall under the European Union’s Global Gateway initiative, which aims to mobilise up to €400 billion in investments worldwide between 2021 and 2027 to support infrastructure development and economic growth.

EIB Vice-President Nicola Beer said the projects are intended to support reconstruction efforts and improve access to essential services, while also marking the bank’s return to financing operations in Pakistan.