World Bank, AIIB Lead Support for Housing, Energy, Transport, and Health Projects
Pakistan received over $440 million in foreign development assistance during the first two months of the current fiscal year, according to data released by the Economic Affairs Division (EAD). The funds were primarily provided by the World Bank, Asian Infrastructure Investment Bank (AIIB), and other international development partners, targeting critical infrastructure and social sector projects across the country.
Flood Recovery and Housing Take Priority
A major portion of the funding was directed toward flood-affected regions. The World Bank provided $100 million for the Sindh Flood Reconstruction Emergency Housing Project, designed to rebuild homes for those displaced by last year’s catastrophic floods.
An additional $28.8 million was allocated for the Sindh Emergency Housing Reconstruction Project, further supporting long-term rehabilitation efforts in disaster-hit communities.
Urban Transport Gets a Boost with Karachi Yellow Line
The Karachi Yellow Line Bus Rapid Transit (BRT) Project—one of Pakistan’s largest urban mobility schemes—received $58.9 million from the World Bank. The initiative is part of broader efforts to modernize public transport in the country’s most populous city and reduce traffic congestion.
Clean Water and Energy Projects Funded Across Provinces
In Punjab, $20 million was committed to the Rural Water Supply and Drainage Project, aimed at improving access to clean drinking water and sanitation in underserved areas.
Energy-related projects also received significant foreign backing:
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$22.4 million for the Dasu Hydropower and Transmission Lines Project
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$9.4 million for the Tarbela IV Expansion Project
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$5 million from the AIIB for the Tarbela V Hydropower Project
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$1 million from France for the Mangla Hydropower Rehabilitation
Healthcare and Renewable Energy Also Supported
The National Health Support Program received $12.6 million from the World Bank to strengthen Pakistan’s healthcare delivery systems and expand access to medical services.
Meanwhile, $18 million was allocated to the Sindh Solar Energy Project, supporting the country’s shift toward renewable energy and reducing its dependency on fossil fuels.
The inflow of foreign assistance reflects continued international confidence in Pakistan’s development agenda despite economic challenges. With projects spread across housing, energy, transport, water, and health sectors, the funds are expected to contribute significantly to infrastructure rehabilitation, climate resilience, and public service delivery.
