World Bank pledges $2 billion to support Pakistan’s flood recovery efforts

The World Bank (WB) has committed $2 billion to assist the Government of Pakistan in addressing the aftermath of the 2022 floods, which includes $1.55 billion designated for new projects. However, disbursements for housing reconstruction in Balochistan have not yet commenced, as noted by World Bank officials during a media briefing regarding flood recovery initiatives on Tuesday.

World Bank Country Director Najy Benhassine stated that the $2 billion pledge was made during the Donors Conference in Geneva in 2023 to support the Pakistani government in its flood response efforts. To date, over $2 billion has been made accessible for implementation via a three-pronged strategy: Immediate Response, Reconstruction and Rehabilitation, and Building Resilience.

Benhassine outlined that $454 million has been allocated through existing projects, with additional allocations of $277 million for immediate response, $177 million for reconstruction and rehabilitation, and $1.55 billion through new initiatives focusing on reconstruction and resilience. Specifically, $213 million of the new funding is earmarked for Balochistan, while various projects in Sindh received significant financial support, including $500 million for reconstruction and housing, $40 million for health, $147 million for social protection, $98 million for agriculture, and $50 million for reconstruction in Khyber-Pakhtunkhwa.

In response to inquiries, World Bank officials confirmed that the disbursement for housing reconstruction in Balochistan has yet to commence, with only 104 accounts opened out of an estimated 250,000 to 280,000 affected individuals. They emphasized that implementation arrangements are in place, although the process has taken longer than anticipated. Meanwhile, progress in Sindh is reportedly faster, with $22 million disbursed for housing reconstruction and a total of $270 million directed to flood-affected individuals thus far.

The Country Director also underscored the need for more concessional loans for low-income countries. Regarding the Sindh Flood Emergency Housing Reconstruction Project, which has a budget of $500 million, officials explained that the project aims to provide resilient, multi-hazard housing reconstruction for core units affected by the floods in selected Sindh districts. The Asian Development Bank (ADB) and the Islamic Development Bank (ISDB) have also contributed with pledges of $400 million and $200 million, respectively, with 935,000 bank accounts already established.

For the Sindh Flood Emergency Rehabilitation Project, also funded at $500 million, the objectives include rehabilitating damaged infrastructure and providing temporary livelihood opportunities in flood-affected areas, as well as strengthening the Government of Sindh’s capacity to respond to climate change and natural disasters.