ISLAMABAD – European Investment Bank’s development arm, EIB Global, announced €160 million financing package for large-scale housing reconstruction in Sindh and water supply improvements in Karachi.
The funding package includes €100 million for Sindh’s post-flood housing reconstruction programme, one of the largest of its kind in the world. The project aims to rebuild around 2.1 million homes destroyed in the catastrophic 2022 floods, which devastated vast parts of southern Pakistan. With a total estimated cost of nearly $2 billion, the initiative is expected to cover a significant share of rural households across Sindh province.
The remaining €60 million will be directed toward Karachi’s critical water infrastructure. Karachi Water and Sewerage Corporation will use the funds to construct two advanced, energy-efficient filtration plants in Gharo and Pipri, located east of the city. Once completed, these facilities are expected to supply approximately 300 million litres of clean drinking water daily, benefiting an estimated 2.2 million residents in Karachi, a city of over 20 million people.
The agreements were officially signed during an EU–Pakistan business forum in Islamabad, under the European Union’s broader Global Gateway strategy, which aims to mobilize hundreds of billions of euros in sustainable infrastructure investment worldwide.
EU officials called projects as major step toward improving climate resilience, safe housing, and access to clean water, especially for vulnerable flood-affected communities. EIB representatives also highlighted that this marks the bank’s renewed engagement in Pakistan after a long gap, reaffirming commitment to long-term development support.
Sindh housing reconstruction programme is also being supported by major international financial institutions, including the World Bank, Asian Development Bank, Islamic Development Bank, along with the provincial government. The rebuilding plan emphasised community-driven approach, ensuring affected families play a central role in reconstruction efforts, with housing designed to meet modern disaster-resilient safety standards.
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