EIB to provide €160m for housing, water projects in Pakistan

ISLAMABAD: The European Investment Bank (EIB) will provide 160 million euros ($171 million) in financing for housing reconstruction and water sector projects in Pakistan, marking its return to the country after a decade.

The funding package includes 100 million euros for climate-resilient reconstruction of around 2.1 million homes in Sindh following the devastating 2022 floods, and 60 million euros to improve water quality in Karachi.

The projects form part of the European Union’s Global Gateway strategy aimed at supporting sustainable infrastructure and development.

The announcement was made during an event held alongside the High-Level EU-Pakistan Business Forum on Tuesday, with a formal signing ceremony expected at a later stage.

The Sindh housing initiative is part of what officials describe as one of the world’s largest post-disaster reconstruction programmes, targeting rural areas hit by the 2022 floods.

The programme, with an estimated cost of nearly $2 billion, is expected to benefit about 40 per cent of rural households in the province.

It is being implemented with support from the Government of Sindh and multilateral lenders including the World Bank, Asian Development Bank and the Islamic Development Bank.

Separately, the EIB will finance the construction of two water filtration plants in Gharo and Pipri to support the Karachi Water and Sewerage Corporation.

The facilities are expected to supply around one billion litres of potable water per day, improving access for residents in Pakistan’s largest city.

The initiatives are aligned with the EU’s Global Gateway plan, which aims to mobilise up to 400 billion euros in investments globally between 2021 and 2027 to support growth, jobs and infrastructure development.

“Rebuilding homes and strengthening essential services like water help create more resilient communities,” EIB Vice-President Nicola Beer said in a statement, adding the projects would support climate resilience and access to safe drinking water, particularly for vulnerable populations.