EIB Commits €160M Investment for Flood Recovery and Water Infrastructure in Pakistan

The funding marks EIB Global’s return to Pakistan after a decade, signalling renewed international confidence in the country’s development trajectory and resilience-building efforts.

In a significant move to support Pakistan's climate recovery and infrastructure development, the European Investment Bank's global arm, EIB Global, has committed €160 million to rebuild flood-affected homes in Sindh and improve access to clean drinking water in Karachi.

The funding marks EIB Global's return to Pakistan after a decade, signalling renewed international confidence in the country's development trajectory and resilience-building efforts.

€100 Million for World's Largest Housing Reconstruction Programme

The bulk of the financing—€100 million—will support Sindh's ambitious housing reconstruction initiative, widely regarded as the largest ongoing post-disaster housing programme globally.

The project aims to rebuild approximately 2.1 million rural homes destroyed by the devastating 2022 floods, which affected millions across the province.

With a total estimated cost of nearly $2 billion, the programme is expected to:

• Cover 40% of rural households in Sindh

• Rebuild homes using climate-resilient standards

• Empower communities by involving households directly in reconstruction

The initiative is being implemented in collaboration with major development partners, including the World Bank, Asian Development Bank, Islamic Development Bank, and the Sindh provincial government.

€60 Million to Deliver Clean Water to Karachi

In parallel, EIB Global is providing €60 million to enhance water infrastructure in Karachi, Pakistan's largest city with a population exceeding 20 million.

The funding will enable the construction of two energy-efficient filtration plants in Gharo and Pipri, significantly boosting water supply capacity.

Once operational, the project will:

• Deliver 300 million litres of clean drinking water daily

• Serve approximately 2.2 million residents

• Improve public health and reduce water scarcity

The initiative will be implemented through the Karachi Water and Sewerage Corporation, addressing one of the city's most pressing urban challenges.

Part of EU's €400 Billion Global Gateway Strategy

The financing agreements were announced during an EU–Pakistan Business Forum in Islamabad and form part of the European Union's Global Gateway strategy, which aims to mobilise €400 billion in global investments between 2021 and 2027.

The strategy focuses on building sustainable, high-quality infrastructure while strengthening partnerships with developing economies.

Strengthening Climate Resilience and Inclusive Development

Pakistani Minister for Economic Affairs Ahad Khan Cheema welcomed the renewed engagement, noting that the investment will play a critical role in rebuilding vulnerable communities and improving access to essential services.

EIB Vice-President Nicola Beer emphasised that the projects align with priorities such as:

• Climate resilience

• Access to safe drinking water

• Inclusive and sustainable development

The housing programme, in particular, incorporates resilience standards designed to protect against future climate-related disasters.

EU-Pakistan Partnership Gains Momentum

European Commissioner for International Partnerships Jozef Síkela highlighted the broader impact of the initiative, stating that the partnership is delivering tangible improvements in people's lives through safe housing and clean water access.

EU Ambassador to Pakistan Raimundas Karoblis described the EIB's return as a critical step in unlocking further investment opportunities under the Global Gateway framework, with expectations of increased collaboration in the coming years.

A New Phase of Development Cooperation

EIB Global's renewed financing signals a new phase in EU-Pakistan development cooperation, combining disaster recovery with long-term infrastructure investment.

By addressing both immediate humanitarian needs and structural challenges, the initiative aims to build resilience, improve living conditions, and support sustainable economic growth.

As Pakistan continues to recover from the impacts of climate disasters, the €160 million investment stands as a key milestone in strengthening the country's capacity to rebuild stronger and more sustainably.