ISLAMABAD: The European Investment Bank’s international development arm, EIB Global, is committing a total of €160 million to help Pakistan rebuild homes in Sindh and to improve water quality in Karachi – the country’s largest city.

The pledges mark a return of EIB Global financing in Pakistan after a decade. The announcement came at the conclusion of the two-day EU-Pakistan Business Forum on Wednesday.

EIB Global is providing a €100 million loan to the Pakistani government for the Sindh housing initiative, which is the world’s largest ongoing reconstruction programme and aims to rebuild around 2.1 million rural homes damaged by devastating floods in 2022. The project has a total cost of almost $2 billion and covers 40 per cent of rural households in Sindh.

EIB Global is also lending €60m to the Pakistani government for the Karachi Water and Sewerage Corporation to build two energy-efficient filtration plants in the towns of Gharo and Pipri. As a result, Karachi will be supplied with about 300 million litres of clean drinking water per day, enough to meet the needs of 2.2m residents.

Funds reconstruction of flood-hit 2.1m homes, 300m litres daily water for Karachi

EIB Global and the Pakistani government announced the two loan agreements during a EU-Pakistan business forum. The EIB financing forms part of the EU’s “Global Gateway” strategy to mobilise €400bn of investments in the 2021-2027 period.

“Through our support for the Sindh housing programme and the Karachi water initiative, we are helping Pakistan strengthen climate resilience, improve access to safe drinking water and support inclusive, sustainable development, particularly for the most vulnerable people,” said EIB Vice-President Nicola Beer.

“This also marks an important step as the EIB resumes financing in Pakistan after a decade, reaffirming our commitment to support climate resilience and inclusive recovery.”

“The European Union and Pakistan are building a partnership that delivers real improvement in people’s lives — supporting safe homes and access to clean water for communities in Sindh and Karachi. Through Global Gateway, we are investing in quality infrastructure to boost long-term health, safety and prosperity,” stated European Commissioner for International Partnerships Jozef Síkela.

“The re-engagement of the EIB in Pakistan is critical for the country to benefit fully from the opportunities deriving from EU’s Global Gateway strategy,” said EU Ambassador to Pakistan Raimundas Karoblis.

“We are confident that, in the course of the next few years, much more de-risked investments will be agreed between the EIB and Pakistan”, the envoy further said.

The housing reconstruction programme in Sindh is also being supported by the World Bank, the Asian Development Bank, the Islamic Development Bank, and the provincial government. Reconstruction will be based on a plan that ensures households play a central role in rebuilding their homes, in line with resilience standards that address the risks of combined or consecutive disasters.

Published in Dawn, April 30th, 2026