IsDB & Pakistan Sign €188.7 Million Financing Agreements for Sindh Flood Housing Reconstruction Project

The Government of Pakistan and the Islamic Development Bank (IsDB) have signed financing agreements for the Sindh Flood Emergency Housing Reconstruction Project which aims to construct 700,000 houses benefiting an estimated 4.2 million people in rural areas.

Islamabad, Pakistan - 22 March 2024 – The Government of Pakistan and the Islamic Development Bank (IsDB), today, signed financing agreements for the Sindh Flood Emergency Housing Reconstruction Project. This €188.7 million project by the Bank is a critical part of the recovery efforts following the devastating floods in 2022, aimed at rebuilding the affected communities in Sindh and providing much-needed climate-resilient housing facilities for families displaced by the floods. 

The agreements were signed by Dr. Kazim Niaz, Secretary of the Economic Affairs Division on behalf of the Government of Pakistan, and Dr. Walid Abdelwahab, Director of the Regional Hub Türkiye on behalf of the IsDB, in the presence of Pakistan's Minister of Economic Affairs, H.E. Ahad Khan Cheema (IsDB Governor).  

The Director of the IsDB Group Regional Hub Türkiye shared the Country Engagement Framework (CEF) Document, outlining the medium-term strategic directions and priorities of the IsDB Group's partnership with Pakistan up to 2025. The IsDB Group Country Engagement Framework is focused on: (1) boosting recovery; (2) tackling poverty and building resilience; and (3) green economic growth which is in line with the Government of Pakistan’s vision and development priorities.  

Expressing his gratitude towards the IsDB and the international community for their support, H.E. Ahad Khan Cheema, Pakistan's Federal Minister of Economic Affairs, emphasized the project's role in the nation's journey towards resilience. The Minister for Economic Affairs appreciated the role and support of IsDB to Pakistan at a very challenging time. He assured to further strengthen the relations with IsDB in the future. 

On the occasion of the signing of the Project Agreements, the Director of Regional Hub Türkiye, Dr. Walid Abdelwahab stated: "Our collective action today is not just about rebuilding homes, but about laying the foundation for sustainable development and resilience against future challenges. The IsDB Group remains committed to supporting Pakistan in its journey towards recovery and prosperity through climate-resilient infrastructure.” 

This project, which is also co-financed by the World Bank, is aligned with the IsDB Group's Country Engagement Framework, and is a cornerstone of the ongoing cooperation between IsDB and Pakistan, reflecting a shared commitment to tackling the challenges posed by climate change and natural disasters. The signing of the project financing agreement with IsDB further reflects the confidence of international financial institutions in Pakistan’s economy and its future. 

The project's ambitious goal is to construct 700,000 houses, benefiting an estimated 4.2 million people in rural areas. Additionally, it will support the creation of 75,000 water, sanitation, and hygiene (WASH) facilities, significantly improving conditions for over 1.3 million individuals. 

The Government of Sindh, in collaboration with the Economic Affairs Division, will oversee the project's implementation through the Sindh Peoples Housing for Flood Affectees (SPHF), ensuring that the efforts meet their objectives efficiently. This partnership between the Government of Pakistan, IsDB, and the international community signifies a shared commitment to sustainable development and disaster resilience. 

About IsDB Group-Pakistan Partnership: 

Pakistan joined the IsDB on 12 August 1974 as a founding member and since then, the partnership has been flourishing. The enduring partnership has, to date, materialized in over 400 projects worth US$15.4 billion, spanning various sectors. This extensive collaboration underscores the mutual commitment to economic development, social progress, and prosperity, laying a strong foundation for a resilient and thriving future for Pakistan.