European Investment Bank expected to fund key development projects in Pakistan — minister

ISLAMABAD: The European Investment Bank (EIB) is likely to fund key development projects in Pakistan, the economic affairs minister said on Wednesday, as Islamabad seeks to drive economic growth and sustainable development in the country.
The statement came after technical-level talks between Pakistani officials and an EIB delegation, during which Pakistan provided and discussed at length a list of 12 potential projects for co-financing.
Pakistan’s Economic Affairs Minister Ahad Cheema expressed that the EIB — the lending arm of the European Union — would consider funding some of these key projects to support Pakistan’s development agenda.
“Mr. Edvardas Bumsteinas [EIB’s Head of Division for Asia & Pacific] responded positively, indicating that he would discuss these projects with senior officials at the EIB HQ to explore possible funding opportunities,” the Pakistani economic affairs ministry said in a statement.
Cheema highlighted that the EIB’s priority areas such as climate action, and high-impact global investments in water, energy and transport sectors aligned with Pakistan’s development needs, appreciating the EIB’s €50 million loan for the Rehabilitation of the Warsak Hydro Power Project and noting its critical role in restoring the plant’s capacity.
The EIB delegation showed interest in key projects, including those financed by other international financial institutions such as the World Bank (WB), the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), according to the Pakistani ministry.
“They are particularly keen on exploring opportunities to provide loans for a range of significant initiatives in Pakistan,” it said.
“Among these are the N-5 road widening project, which aims to improve road connectivity and transportation efficiency particularly in flood hit areas. Additionally, the delegation is interested in water filtration and industrial water recycling projects in Karachi, which are vital for addressing urban water supply challenges, and in renewable and hydropower energy projects, which align with global trends toward sustainable energy solutions.”
The development comes amid Islamabad’s efforts to drive economic growth and development in the South Asian country that has been engulfed in an economic crisis due to decades of financial mismanagement.
Since avoiding a default last year, Pakistan has been making attempts to boost trade and investment to revive its fragile economy, and reached a staff-level agreement with the International Monetary Fund (IMF) in July for a new $7 billion loan.