ISLAMABAD, Wednesday,  April 29, 2026 (WNP): The international development arm of the European Investment Bank, EIB Global, has announced €160 million in financing for Pakistan, marking its return to the country after a decade with major investments in housing reconstruction and water infrastructure.

The financing includes a €100 million loan to support the Sindh housing initiative, the world’s largest ongoing reconstruction programme, aimed at rebuilding approximately 2.1 million rural homes damaged by the devastating floods of 2022. The programme, with an estimated total cost of nearly $2 billion, is expected to benefit around 40 percent of rural households in Sindh.

In addition, EIB Global will provide €60 million for the construction of two energy-efficient water filtration plants in Gharo and Pipri, located East of Karachi. The project is expected to supply around 300 million litres of clean drinking water daily, meeting the needs of approximately 2.2 million residents in the metropolitan city.

The two loan agreements were announced during the EU-Pakistan Business Forum in Islamabad and form part of the Global Gateway, the European Union’s flagship external investment strategy aimed at mobilising up to €400 billion globally between 2021 and 2027.

Minister for Economic Affairs Ahad Khan Cheema termed the renewed engagement of EIB Global a significant step toward strengthening Pakistan’s recovery and long-term resilience, particularly in rebuilding flood-affected communities and improving access to safe drinking water.

EIB Vice-President Nicola Beer said the financing would support climate resilience, sustainable development, and improved living conditions, especially for vulnerable populations, while reaffirming the bank’s commitment to Pakistan after a decade-long gap.

European Commissioner for International Partnerships Jozef Síkela said the EU and Pakistan are building a partnership focused on delivering tangible improvements in people’s lives through investments in safe housing and clean water.

EU Ambassador to Pakistan Raimundas Karoblis described the re-engagement of the EIB as critical for Pakistan to fully benefit from opportunities under the Global Gateway strategy, expressing confidence in further investment agreements in the coming years.

The Sindh housing reconstruction programme is also supported by international partners including the World Bank, Asian Development Bank, and the Islamic Development Bank, alongside the provincial government. The initiative emphasizes community-led rebuilding aligned with resilience standards to address future disaster risks.

The renewed engagement of EIB Global underscores growing Pakistan-EU cooperation in climate resilience, infrastructure development, and sustainable economic growth.