Pakistan and the EU reach a loan deal for Karachi’s clean drinking water

In order to facilitate the provision of clean drinking water in Karachi, the European Investment Bank (EIB) and the Pakistani government inked a €60 million loan deal on Wednesday, the first between the two parties in ten years, the EU said in a statement.

The Karachi Water Infrastructure Framework, which was approved by the EIB in August of this year, will provide funding for the building and renovation of water treatment facilities in Karachi, the most populous city in Pakistan, in order to improve water security and boost the supply of safe water.

According to state broadcaster Radio Pakistan, the two parties inked the agreement on the fringes of the 15th Pak-EU Joint Commission in Brussels.

The EU said on social media site X, “Today, the @EIB signed its first loan agreement with Pakistan in ten years: a €60 million loan supporting the delivery of clean drinking water for #Karachi.”

According to Radio Pakistan, the agreement demonstrates Pakistan’s dedication to advancing climate-resilient infrastructure and modernizing vital urban services.

“The declaration highlights common priorities in sustainable development, public service delivery, and climate and environmental resilience and shows the ongoing momentum in Pakistan-EU cooperation.”

Karachi has a persistent issue with clean drinking water. According to a 2023 study by the Karachi Water and Sewerage Corporation (KWSC), 90% of water samples taken from different parts of the city were found to be polluted with E. coli, coliform bacteria, and other dangerous diseases, making them hazardous to drink.