The World Bank has given the green light to $1.7 billion in funding for the restoration of flood-damaged homes and infrastructure in Sindh. This substantial flood response loan will cover over one-fifth of the total cost required for post-flood recovery in the province.
During a significant event called “Pakistan Day” at the World Bank Board, the authorities successfully obtained support from the United States and European nations for the five different projects aimed at rehabilitating and reconstructing the province. Naveed Kamran Baloch, Pakistan’s Executive Director at the World Bank, played a crucial role in securing this vital assistance.
The World Bank’s Board of Executive Directors has granted $1.692 billion in financing for five projects that will aid the flood-affected population in Sindh, as stated in the lender’s local office statement on Tuesday.
These projects encompass rehabilitation, housing reconstruction, restoration of crop production, and mother and child healthcare services, addressing the pressing needs of vulnerable communities in Sindh. The total cost of post-flood recovery and reconstruction in the province amounts to $7.9 billion, with Sindh requiring the highest allocation. The approved funds will cover approximately 22% of the overall expenses.
Previously, the government expedited the approval process but unintentionally violated the Public Finance Management Act of 2019, which had been enacted based on the World Bank’s guidance. According to the Post Disaster Need Assessment Report, housing or settlement costs in Sindh are estimated at $4.3 billion, water resources and irrigation infrastructure at $442 million, transport and communications at $311 million, and water supply, municipal services, and community infrastructure at $421 million.
Sindh, with a population of around 50.4 million, equivalent to almost one-fourth of the country’s total population, contributes 27% to Pakistan’s GDP. Nearly half of Sindh’s population resides in rural areas, and 37% of the rural population lives below the poverty line, exceeding the national average. The poverty rates are even higher in districts affected by the floods, reaching 53.4% in Badin, according to the World Bank project documents. Satellite and survey data indicate that the floods have predominantly impacted poorer areas, including within tehsils. In addition to economic hardship, the flood-affected regions of Sindh exhibit some of the highest rates of stunting, reflecting limited access to sanitation and safe water facilities.
Sindh suffered severe damage during the 2022 floods, affecting various sectors, including housing, health, agriculture, and livelihoods. “Beyond rehabilitating and reconstructing the damaged houses and infrastructure, our involvement in the flood response effort is an opportunity to enhance resilience and reform institutions and governance structures,” stated Najy Benhassine, the World Bank Country Director for Pakistan.
The World Bank has approved a $500 million loan for the Sindh Flood Emergency Rehabilitation project, which aims to restore damaged infrastructure, provide short-term livelihood opportunities, and strengthen the government’s disaster response capabilities.
This project will contribute to the restoration and improvement of critical irrigation and flood protection infrastructure, water supply schemes, roads, and related facilities. Moreover, it will benefit approximately two million individuals in the most flood-affected districts, with special emphasis on empowering women and promoting resilient reconstruction.
A cash-for-work program will aid 100,000 households, offering income support and livestock restocking for flood-affected farmers.
$500 million is allocated for the Sindh Floods Emergency Housing Reconstruction project, supporting resilient housing reconstruction for 350,000 units.
Additionally, a $292 million loan is approved for the Sindh Water and Agriculture Transformation project, benefiting over 885,000 households. Cash transfers will assist 800,000 farming households in restoring crop production.
The World Bank also granted a $200 million loan for the Sindh Strengthening Social Protection Delivery System project and $200 million for the Sindh Integrated Health and Population Project, enhancing healthcare services for reproductive, maternal, and child health.
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