Pakistan secures $400 million loan from ADB

The funds will support the Sindh Emergency Housing Project for flood rehabilitation, says statement

The Asian Development Bank (ADB) has approved a $400 million concessional loan to support the reconstruction of houses and community infrastructure in Sindh province which was severely affected by the 2022 floods.

The Sindh Emergency Housing Reconstruction Project aims to rehabilitate damaged homes and community infrastructure, with a focus on enhancing climate resilience.

The initiative is part of ADB's broader commitment of $1.5 billion in assistance from 2023 to 2025 to accelerate Pakistan's flood recovery efforts.

"This project will help rebuild homes and restore livelihoods and essential services in Sindh, the province hardest hit by the 2022 floods," said ADB Director General for Central and West Asia Yevgeniy Zhukov.

Sindh province sustained 83% of the total housing damage from the 2022 floods, with about 2.1 million homes either destroyed or damaged.

Many victims still reside in inadequate, temporary shelters lacking essential services.

The project will provide conditional cash grants to rebuild 250,000 homes with resilient designs and support the construction of infrastructure such as drinking water and sanitation facilities, covered drainage, and renewable energy solutions for 100,000 households in around 1,000 flood-affected villages in Sindh.

Additionally, grants for livestock, agriculture, small enterprises, and e-commerce will be provided.

"ADB’s support will help Pakistan build back better and promote community-led climate resilience and disaster risk management," said ADB Director for Water and Urban Development Srinivas Sampath.

"We are coordinating with other development partners to support the government’s recovery and reconstruction priorities."

The project aligns with the government’s resilient rehabilitation, reconstruction, and recovery strategy (4RF) and will follow an integrated approach to ensure complementary investments across sectors.

A $500,000 technical assistance grant will support the government’s operational capabilities.