European Investment Bank signs €60 million loan deal with Pakistan, first in 10 years

The European Investment Bank on Tuesday signed its first loan agreement with Pakistan in a decade, pledging €60 million to support clean drinking water and sanitation projects in Karachi.

The agreement was signed in Brussels on the sidelines of the 15th EU-Pakistan Joint Commission, marking a renewed financial engagement between the EIB and Pakistan after a 10-year gap.

The loan, provided under the European Union’s Global Gateway initiative, will be used to rehabilitate and construct key water treatment facilities in Karachi.

The project aims to improve sanitation, strengthen public health outcomes and enhance water security for the city’s rapidly growing population.

Officials said the investment is expected to help modernize aging infrastructure and expand access to safe drinking water in Pakistan’s largest city, which continues to face acute water shortages and contamination challenges.

The EIB-backed project aligns with broader EU efforts to support sustainable infrastructure and climate-resilient development in partner countries.

The EIB is the lending arm of the European Union which funds projects within and outside the bloc.