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Pakistan has redirected Balochistan flood relief funds, leaving 134,000 families uncertain as the World Bank raises concerns over the housing reconstruction project.
The proposed $180 million additional financing was ultimately rejected by the steering committee, deepening uncertainty over the future of thousands of flood-hit families. (Representational image; source: Reuters File)
More than 134,000 families affected by the devastating 2022 floods in Balochistan could be left without the homes they were promised after Pakistan restructured a Rs115 billion World Bank-backed rehabilitation programme and shifted funds away from housing.
The move has reportedly left the World Bank concerned, particularly after Pakistan’s project steering committee rejected an additional $180 million that could have expanded housing reconstruction to more flood-affected families. Instead, the remaining funds are being redirected towards infrastructure projects, including roads and irrigation.
The controversy centres on the Integrated Flood Resilience & Adaptation Project (IFRAP), a $400 million World Bank-funded programme created to help Balochistan recover from the 2022 floods. Its housing component was designed around an owner-driven, community-led model aimed at helping families rebuild stronger and more disaster-resistant homes.
However, the project steering committee, headed by Planning Minister Ahsan Iqbal and Balochistan Chief Minister Sarfraz Bugti, has capped the housing component at around 69,000 homes.
That decision could leave a large number of verified families outside the housing programme.
The World Bank’s concerns extend beyond the funding shift. Pakistan’s Economic Affairs Division has recorded the lender’s concerns over changes to the project’s leadership arrangements, while disagreements have emerged over the programme’s management and implementation.
The proposed $180 million additional financing was ultimately rejected by the steering committee, deepening uncertainty over the future of thousands of flood-hit families.
The decision comes amid allegations of serious irregularities in the housing programme, including record tampering, duplicate claims and multiple payments for the same houses. Officials have also been investigating allegations that attempts were made to obstruct the probes.
Questions over the actual number of completed houses have further complicated the project.
According to meeting records, 15,000 completed houses were reportedly presented to Prime Minister Shehbaz Sharif, while official figures showed only 8,694 completed homes. Planning Minister Ahsan Iqbal and Balochistan Chief Minister Sarfraz Bugti subsequently ordered an independent high-level inquiry.
The Planning Commission has also proposed using satellite imagery to independently verify the number of houses completed on the ground.
Pakistan, however, rejects the suggestion that the housing programme has been abandoned.
The Planning Commission says around 75,000 severely damaged houses are under construction, with approximately 26,000 already completed. It has also maintained that the originally approved target of 68,922 homes will remain protected.
But for Balochistan’s flood-hit communities, the dispute comes after years of waiting.
Pakistan received more than $9 billion in international pledges at the January 2023 Geneva Conference for post-flood recovery and reconstruction. Yet, four years after the disaster, many families who lost their homes are still waiting for permanent shelter.
What was presented as a major international-backed reconstruction effort has now become entangled in funding disputes, leadership changes, verification problems and allegations of irregularities.
And as Pakistan redirects funds away from housing, the biggest uncertainty remains for the families at the heart of the programme: after losing their homes in the floods, will they finally receive the resilient houses they were promised?
About the Author
Saurabh Verma is a Chief Sub-Editor at News18.com, specializing in Indian politics, national current affairs, and breaking global news. With years of experience tracking power shifts, election strateg…Read More
August 11, 2026, 7:44 PM IST
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