The European Investment Bank’s development arm, EIB Global, has announced €160 million in financing to support reconstruction and water projects in Pakistan. The funding aims to rebuild flood-affected homes in Sindh and improve water supply in Karachi. The initiative is expected to strengthen climate resilience and improve living conditions for millions.
The announcement was made at the conclusion of the EU-Pakistan Business Forum in Islamabad. Officials confirmed that this marks the return of EIB Global financing to Pakistan after a decade. The support comes under the European Union’s Global Gateway investment strategy.
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Of the total package, €100 million will support Sindh’s large-scale housing reconstruction programme. The project aims to rebuild around 2.1 million rural homes damaged by the 2022 floods. It is one of the world’s largest ongoing recovery efforts and covers a significant share of rural households in the province.
The remaining €60 million will go to Karachi’s water and sanitation systems. The funding will help construct two energy-efficient filtration plants in Gharo and Pipri. Once completed, the project is expected to supply around 300 million litres of clean drinking water daily to millions of residents.
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Officials from the European Union and EIB said the investment will support sustainable development and disaster resilience in Pakistan. The Sindh housing project is also backed by multiple international lenders, including the World Bank and Asian Development Bank. Authorities say the initiative focuses on community-led reconstruction with long-term resilience standards.