ISLAMABAD: Marking a significant return to the country after a decade-long hiatus, the European Investment Bank’s development arm, EIB Global, has committed EUR 160 million to critical infrastructure and recovery projects to help Pakistan rebuild flood-damaged homes in Sindh and improve water quality in Karachi. Announced during a European Union – Pakistan business forum in Islamabad on Wednesday, this financing serves as a cornerstone of the EU’s Global Gateway strategy, which seeks to mobilize sustainable investments worldwide. The heart of this commitment is a EUR 100 million loan dedicated to the Sindh housing initiative, currently recognized as the world’s largest reconstruction programme. This massive effort aims to rebuild 2. 1 million rural homes devastated by the 2022 floods, covering 40% of the rural households in the province. The project has a total cost of almost USD2 billion and covers 40% of rural households in Sindh. By putting residents at the center of the rebuilding process and adhering to strict resilience standards, the project — supported by a coalition including the World Bank and the Asian Development Bank—seeks to protect the most vulnerable from future climate disasters. Complementing this housing effort is a EUR 60 million loan for the Karachi Water and Sewerage Corporation to enhance the water security of Pakistan’s most populous city. These funds will facilitate the construction of two energy-efficient filtration plants in Gharo and Pipri, which are expected to deliver 300 million liters of clean drinking water daily to 2. 2 million residents. EIB Vice-President Nicola Beer and European Commissioner Jozef Síkela emphasized that these initiatives are about more than just bricks and pipes; they represent a partnership designed to deliver real improvements in health, safety, and prosperity. As EU Ambassador Raimundas Karoblis noted, this re-engagement is a critical step for Pakistan to fully leverage international investment, signaling a future of de-risked, high-impact development that strengthens the nation’s climate resilience and inclusive recovery. Reconstruction will be based on a plan ensuring that households play a central role in rebuilding their homes in line with resilience standards that cover the risks of combined or consecutive disasters, he added. The European Union, in collaboration with the Government of Pakistan, inaugurated the first-ever High-Level EU-Pakistan Business Forum in Islamabad, marking an important milestone in strengthening bilateral economic relations. The Forum brought together around 1000 senior policymakers, European and Pakistani business leaders, investors, and financial institutions. With the EU being the largest single market in the world, a leading outward Foreign Direct Investment globally, and Pakistan’s number one export destination, the Forum represents a significant opportunity to further the EU-Pakistan economic partnership. It aims to turn strong trade ties into increased investment flows, technology partnerships, greater innovation, and sustainable industrial growth. Copyright Business Recorder, 2026
Flood recovery projects: EIB Global commits €160m
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