The European Investment Bank, via its development arm EIB Global, has approved €160 million in financing to support water supply improvements in Karachi and a large-scale reconstruction programme to rebuild flood-damaged homes in Pakistan’s Sindh province.
A €60 million loan will finance two energy-efficient water filtration plants for the Karachi Water and Sewerage Corporation in Gharo and Pipri, east of Karachi. The facilities are expected to deliver approximately 300 million litres of drinking water per day, supplying around 2.2 million people in a metropolitan area of more than 20 million inhabitants, where access to safe water remains uneven.
The remaining €100 million will support a reconstruction programme to rebuild flood-damaged homes in Sindh following the 2022 floods. The initiative aims to reconstruct around 2.1 million rural houses, covering roughly 40% of affected households, and is part of a broader programme with an estimated cost of nearly $2 billion. The effort is also supported by other international financial institutions, including the World Bank and the Asian Development Bank, alongside local authorities.
Pakistani Minister for Economic Affairs Ahad Khan Cheema said: “The European Investment Bank’s renewed engagement in Pakistan is a significant step toward strengthening Pakistan’s recovery and long-term resilience. This financing will play a vital role in rebuilding flood-affected communities in Sindh and improving access to safe drinking water in Karachi.”
EIB Vice-President Nicola Beer stated: “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.”
European Commissioner Jozef Síkela highlighted that the partnership aims to deliver “real improvement in people’s lives,” particularly through safe water access and infrastructure development.
The combined investments highlight the interdependence between water services and recovery from flood impacts in climate-exposed regions.
