EIB Global has committed €160 million to Pakistan its first financing in a decade including €100 million for Sindh’s post-flood housing reconstruction and €60 million for two water filtration plants in Karachi.
EIB Global, the international development arm of the European Investment Bank, has committed €160 million to Pakistan, marking its return to the country after a decade, according to official disclosures.
A €100 million loan to the Pakistani government will support the Sindh housing initiative the world’s largest ongoing reconstruction programme which aims to rebuild approximately 2.1 million rural homes damaged by floods in 2022.
The project has a total cost of nearly $2 billion and covers 40% of rural households in Sindh. Separately, a €60 million loan will enable the Karachi Water and Sewerage Corporation to build two energy-efficient filtration plants in Gharo and Pipri, supplying around 300 million litres of clean drinking water daily to meet the needs of 2.2 million residents in Karachi, a city of over 20 million.
This development matters because the 2022 floods caused widespread devastation to housing and infrastructure. The EIB financing forms part of the EU’s Global Gateway strategy, which aims to mobilise €400 billion in investments for the 2021-2027 period. The loans were announced during a European Union Pakistan business forum in Islamabad. Industries impacted include residential construction, water treatment, and climate resilience infrastructure.
Regional stakeholders include Sindh’s rural population, Karachi’s municipal authorities, and international development contractors.
For investors, the return of EIB Global after a decade signals improved bilateral financing conditions and opens opportunities for EU-linked engineering and construction firms in Pakistan’s reconstruction and water sectors.
EIB Global is the arm of the European Investment Bank focused on development finance outside the European Union.
The Karachi Water and Sewerage Corporation is the public utility responsible for water supply and sanitation in Karachi, Pakistan’s largest city.
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