Pakistan has secured a significant investment of €160 million from the European Investment Bank’s (EIB) international development arm, EIB Global, to support vital housing and water projects in the southeastern province of Sindh and the country’s largest city, Karachi.
This marks the return of EIB financing to Pakistan after a decade-long hiatus.
EIB Global’s €100M Loan to Rebuild Flood-Damaged Homes
A major portion of the €160 million financing, totaling €100 million, will support the Sindh housing project. This initiative is part of the world’s largest ongoing reconstruction program aimed at rebuilding 2.1 million homes that were damaged by catastrophic floods in 2022. The floods devastated vast areas in Sindh, affecting 40% of rural households. The overall cost of the housing recovery project is close to $2 billion.
By focusing on climate-resilient housing, the reconstruction program is designed not only to provide immediate relief but also to ensure that homes are built to withstand future environmental disasters, offering sustainable solutions for affected communities.
€60 Million Loan to Improve Karachi’s Drinking Water Supply
EIB Global is also contributing €60 million to the construction of two energy-efficient water filtration plants in the towns of Gharo and Pipri, located east of Karachi. These plants are set to provide 300 million liters of clean drinking water daily, benefiting 2.2 million residents in Karachi, the capital of Sindh province with a population exceeding 20 million.
The water project is vital for improving the quality of life for Karachi’s residents, addressing the city’s growing water scarcity issues, and contributing to public health improvements.
EU’s Global Gateway Strategy: Investing in Pakistan’s Future
These projects are part of the EU’s Global Gateway initiative, which seeks to mobilize €400 billion in investments over the 2021-2027 period to promote sustainable development in partner countries. Both the Sindh housing and Karachi water projects reflect the EU’s commitment to supporting climate resilience, improving access to essential services, and fostering inclusive growth.
“We are helping Pakistan strengthen climate resilience, improve access to safe drinking water, and support sustainable development, particularly for the most vulnerable people,” said EIB Vice-President Nicola Beer. “This also marks an important step as the EIB resumes financing in Pakistan after a decade, reaffirming our commitment to inclusive recovery.”
Strengthening EU-Pakistan ties for Sustainable Development
European Commissioner for International Partnerships, Jozef Síkela, emphasized the ongoing partnership between the European Union and Pakistan. “Through Global Gateway, we are investing in quality infrastructure that will enhance long-term health, safety, and prosperity for communities in Sindh and Karachi,” he stated.
EU Ambassador to Pakistan, Raimundas Karoblis, also underscored the importance of EIB’s re-engagement in the country. “The re-engagement of the EIB is critical for Pakistan to benefit fully from the opportunities stemming from the EU’s Global Gateway strategy,” he remarked, adding that further investments between the EIB and Pakistan are expected in the coming years.
Collaborative Effort for Recovery and Resilience
The Sindh housing reconstruction program is supported not only by EIB Global but also by several international organizations, including the World Bank, the Asian Development Bank, and the Islamic Development Bank. These efforts are underpinned by a comprehensive reconstruction plan, which places a central focus on community involvement and building homes with enhanced resilience to climate-related disasters.
By combining financial support with robust partnerships, these projects represent a significant step towards Pakistan’s long-term recovery and development, ensuring a more sustainable and secure future for the people of Sindh and Karachi.