By The Asian Development Bank (ADB) has approved a $400 million concessional loan to aid in the reconstruction of homes and community infrastructure in Sindh, Pakistan, which was severely affected by the 2022 floods. This support, detailed in a recent press release, aims to address the extensive damage caused by the floods, which submerged one-third of Pakistan, impacted over 33 million people, and displaced nearly 8 million.
The concessional loan will fund the Sindh Emergency Housing Reconstruction Project, focusing on rehabilitating flood-damaged homes and infrastructure while boosting livelihood recovery. Key components include:
- Reconstruction of 250,000 Houses: These will be built with designs that are resilient to multiple hazards and environmentally responsive.
- Community Infrastructure: Development of drinking water and sanitation facilities, covered drainage, and renewable energy solutions for 100,000 households in around 1,000 flood-damaged villages.
- Livelihood Support: Conditional cash grants for livestock, agriculture, small businesses, and e-commerce.
The project is a crucial element of ADB’s broader $1.5 billion commitment from 2023 to 2025 aimed at accelerating Pakistan’s recovery from the floods. According to ADB Director General for Central and West Asia, Yevgeniy Zhukov, this initiative will help rebuild homes and communities, restore livelihoods, and improve basic services in Sindh, the province hardest hit by the 2022 disaster.
The ADB noted that Sindh bore 83% of the total housing damage from the floods, with around 2.1 million houses either destroyed or severely damaged. Two years later, many victims remain in temporary shelters lacking essential services like water, sanitation, and electricity.
In addition to the reconstruction efforts, the project will promote community-led climate resilience and disaster risk management strategies. A $500,000 technical assistance grant will also support the government with procurement, safeguarding compliance, and technical and financial management.
The ADB remains dedicated to fostering a prosperous, inclusive, and sustainable Asia-Pacific region, aiming to eliminate extreme poverty and enhance climate-resilient housing solutions. This recent loan follows a $180 million project announced in May for restoring forests, drains, and roads in Sindh’s coastal areas.
The ADB’s involvement is part of a broader effort to support Pakistan amidst its challenging economic outlook and ongoing political uncertainties.
