World Bank approves $300m for rural Sindh water and sanitation project to combat child stunting

The World Bank Group’s Board of Executive Directors has approved $300 million in financing to expand access to safe water supply, sanitation, and hygiene (WASH) services for 1.5 million people across selected rural areas of Sindh Province.

The financing supports the Sindh Transformational Accelerated Rural Water Supply, Sanitation, and Hygiene Services Phase 1 Project (STAR WASH-1), which forms part of a broader $540 million co-financed initiative designed to modernize rural utility delivery and address acute public health challenges.

How will STAR WASH-1 address child stunting and public health in rural Sindh?

Unsafe drinking water and inadequate sanitation trigger repeated bouts of diarrhea among young children, impairing nutrient absorption and restricting physical and cognitive development.

According to World Bank assessments, more than half of children under five in rural Sindh suffer from stunting, compounded by widespread groundwater salinity and household fecal contamination risks.

"Stunting is among Pakistan's most severe and persistent human capital challenges, and unsafe water, sanitation and hygiene is a major underlying driver," said Bolormaa Amgaabazar, World Bank Country Director for Pakistan.

"By expanding access to these services for 1.5 million people in rural Sindh, this project will help address one of the root causes of child stunting."

To reverse these health indicators, STAR WASH-1 targets halving water contamination at the point of use while connecting 80 percent of targeted rural communities to a professional water and sanitation service provider.

What infrastructure and institutional reforms are planned under the project?

The project will finance climate-resilient infrastructure, including solar-powered water supply schemes and upgraded sanitation and wastewater systems, alongside an integrated social and behavior change campaign to promote household and environmental hygiene.

Rather than focusing solely on physical construction, the initiative seeks to transition rural Sindh toward financially sustainable, professionally managed service delivery.

The program is projected to generate more than 14,000 jobs across the province. It will support the formalization of the Sindh People's Housing for Flood Affectees (SPHF), a government-owned, not-for-profit entity, into a dedicated rural WASH utility company.

"Investing in safe water, sanitation, and hygiene is more than building infrastructure—it is investing in human capital," said Bekele Debele Negewo, Lead Water Resources Management Specialist at the World Bank.

"By helping reduce child stunting, WASH investments contribute to a healthier, more productive future for the people of Sindh. STAR WASH-1 is designed to advance this goal by transforming rural water and sanitation services through climate-resilient, community-centered, and financially sustainable systems."

How is $540 million financing structured across development partners?

STAR WASH-1 is the first phase of a four-phase Pakistan Rural Water, Sanitation, and Hygiene Services Program, rolled out under a 10-year, multi-phase programmatic approach.

The operation aligns with the World Bank Group’s Water Forward initiative, which treats water security as a cornerstone for employment, private investment, economic growth, and climate resilience.

Alongside the World Bank’s $300 million commitment, the $540 million package incorporates $150 million in co-financing from the Asian Development Bank (ADB) under a recently agreed Full Mutual Reliance Framework, with the World Bank acting as lead agency for preparation and implementation—as well as $90 million equivalent in counterpart funding from the Government of Sindh.