EU Approves €160 Million Loan for Pakistan Under EIB Support

ISLAMABAD (Web Desk) The European Union has approved a €160 million financing package for Pakistan through the European Investment Bank, marking one of the bloc’s significant development investments in the country in the past decade.

According to details, €100 million of the total funding will be allocated for post-flood rehabilitation efforts in Sindh. The project aims to support the construction and reconstruction of around 2.1 million homes designed to withstand future natural disasters.

The remaining €60 million will be used to improve water supply infrastructure in Karachi, with a focus on strengthening distribution systems and enhancing urban water management.

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Officials said the investment represents the EIB’s largest engagement in Pakistan in the last ten years and is intended to improve disaster resilience as well as essential urban services.

A day earlier, the EU and the Government of Pakistan also inaugurated the first-ever High-Level EU–Pakistan Business Forum in Islamabad. The event brought together around 1,000 policymakers, investors, and business leaders from both sides.

The forum highlighted the EU’s position as Pakistan’s largest export market and a major global investor, aiming to deepen economic ties through increased investment, technology cooperation, innovation, and sustainable industrial development.