Housing reconstruction and water infrastructure: EIB set to bring €160m in financing

ISLAMABAD: The European Investment Bank (EIB) is set to return to Pakistan after a decade, bringing €160 million in financing for housing reconstruction and water infrastructure, officials announced on Tuesday. Formal signing of the agreements will be held Wednesday (today). The announcement, made at the EU-Pakistan Business Forum, signals a revival of EIB funding in Pakistan, with €100 million earmarked for climate-resilient housing in Sindh and €60 million for improving water quality in Karachi. EIB Vice-President Nicola Beer said the bank’s return reflects a renewed commitment to Pakistan’s climate resilience and inclusive recovery, particularly for vulnerable communities. European Commissioner for International Partnerships Jozef Síkela highlighted the projects as tangible outcomes of EU-Pakistan engagement, translating partnership into improved livelihoods through essential infrastructure. READ MORE: EU announces €160m loan package for Pakistan EU Ambassador to Pakistan Raimundas Karoblis described the EIB’s re-engagement as a critical step in attracting future Global Gateway investments, expressing confidence that more “de-risked” funding would follow in the coming years. As the EU’s 27-member-owned lending arm, the EIB is one of the world’s largest multilateral financiers, with a growing focus on climate and infrastructure projects aligned with EU policy priorities. The housing programme will help rebuild roughly 2.1 million homes damaged during the 2022 floods – part of one of the world’s largest post-disaster reconstruction efforts, with an estimated total cost of nearly $2 billion. Covering around 40% of rural households in Sindh, the project is being implemented with support from the provincial government and multilateral partners including the World Bank, Asian Development Bank, and Islamic Development Bank. Reconstruction under the programme will be beneficiary-led, with financial aid channelled through bank accounts opened in women’s names – an initiative designed to boost financial inclusion and empower women in rural communities. In Karachi, EIB financing will support the Karachi Water and Sewerage Corporation in constructing two filtration plants at Gharo and Pipri, expected to provide about one billion litres of clean drinking water daily, tackling long-standing urban water shortages. These projects are part of the EU’s Global Gateway initiative, which aims to mobilise up to €400 billion globally by 2027 to support sustainable infrastructure, climate resilience, and economic connectivity. Copyright Business Recorder, 2026

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