ISLAMABAD: The Eu­­ropean Investment Bank (EIB) signed its first loan agreement with Pakistan in a decade supporting the delivery of clean drinking water for Karachi.

The agreement, signed in Brussels on Wednesday on the margins of the 15th EU-Pakistan Joint Com­mission, formalises €60 million loan, as part of the global gateway, to rehabilitate and construct key water treatment facilities, improve sanitation, public health and water security for Karachi’s growing population.

The signing of the agre­ement demonstrates the continued momentum in Pakistan-EU cooperation and highlights shared priorities in sustainable dev­elopment, public service delivery, and climate and environmental resilience.

The joint commission meeting, held Dec 15 to 17, focussed on deepening ties, with key outcomes, discussions on GSP+, human rig­hts issues, energy, development, and regional issues like Afghanistan.

The declaration to eff­ect the loan was signed by Economic Affairs Division Secretary Muhammad Hu­­mair Karim and EIB Head of Division (Asia-Pacific) Edvardas Bumsteinas.

The project will rehabilitate and modernise water treatment facilities in Kar­achi to significantly enha­n­­ce the city’s water supply and improve water securi­ty for its rapidly growing population, as per the strategic objectives of the Sindh Water Policy 2023 and the Sindh WASH Sector Deve­lopment Plan 2016-26.

Published in Dawn, December 18th, 2025