KARACHI: The European Investment Bank (EIB) has returned to Pakistan after a decade, announcing a €160 million investment to support flood-resilient housing in Sindh and critical water infrastructure in Karachi.
The financing forms part of the European Union’s Global Gateway initiative, which seeks to mobilize €400 billion worldwide for sustainable infrastructure and economic growth.
As per details and reports available in public domain, of the total commitment, €100 million will be allocated to the Sindh Housing Reconstruction Programme, a $2 billion initiative aimed at rebuilding 2.1 million homes destroyed in the devastating 2022 floods.
The project is expected to benefit nearly 40 percent of rural households in Sindh, ensuring that new housing is designed to withstand future climate shocks. The programme is being implemented with support from the Government of Sindh, the World Bank, Asian Development Bank, and Islamic Development Bank.
The remaining €60 million will finance the construction of two modern filtration plants in Gharo and Pipri, overseen by the Karachi Water and Sewerage Corporation. Once operational, the facilities will provide one billion litres of clean drinking water per day, addressing one of Karachi’s most pressing public health challenges and improving access to safe water for millions of residents.
The EIB’s renewed engagement in Pakistan is seen as a major boost for Sindh’s flood recovery and Karachi’s water infrastructure, aligning with the country’s urgent climate adaptation needs. If executed effectively, the projects could transform living conditions for millions of Pakistanis while strengthening EU-Pakistan economic ties and demonstrating the importance of international cooperation in tackling climate resilience and urban infrastructure challenges.
