The World Bank has warned Pakistan that redirecting funds from a flood-hit housing programme in Balochistan could deepen poverty among vulnerable households….reports Asian Lite News Desk
The World Bank has warned Pakistan against redirecting funds meant for a multi-billion-rupee resilient housing programme for flood-affected people in Balochistan towards infrastructure projects, saying the move could deepen poverty among vulnerable communities.
The warning followed meetings between World Bank Country Director Boloromaa Amgaabazar and Pakistan’s Federal Minister for Planning, the Chief Minister of Balochistan and other officials, according to a report by Dawn.
The World Bank raised concerns after housing support was capped at 62,966 first-tranche beneficiaries as of June 22, 2026, while subsidy support was limited to 97,000 beneficiaries.
The bank also expressed concern over the handling of fraud and corruption issues linked to the programme.
“Based on the socio-economic profile of the eligible household, the risk is not simply that households remain without housing assistance; rather, it is that existing vulnerabilities become mutually reinforcing and deepen over time,” the World Bank said in communication to the federal and Balochistan governments.
The bank said 84 per cent of eligible beneficiaries were classified as ultra-poor and vulnerable. Of these, 28 per cent earned less than $30 a month, while another 26 per cent earned between $31 and $70.
The beneficiary profile also showed that 39 per cent were tenants, 37 per cent were daily-wage labourers and 8 per cent were small farmers.
According to the World Bank, these groups generally have limited savings, poor access to formal credit, few productive assets and limited capacity to cope with economic shocks.
Amgaabazar wrote to Pakistan’s Federal Secretaries for Economic Affairs and Planning and the Secretary of Balochistan that the cap and redirection of housing assistance had left 119,049 verified and eligible households without identified financing support.
She also warned that publicly disclosing the decision before finalising a joint communication strategy with the World Bank could create further problems, as households that had completed verification and signed project undertakings could continue to expect housing assistance.
The World Bank also raised concerns over the handling of grievances. It said 66,120 exclusion-related complaints had been registered in the project’s grievance management system by the agreed cut-off date.
The bank said each complainant should be contacted individually and formally informed of the decision.
“Written acknowledgement, or other verifiable evidence confirming delivery and receipt of the communication, should be obtained and shared with the bank for review. A credible and transparent grievance resolution process is essential to mitigating legal, operational, and reputational risks associated with eventual closure of the component,” Amgaabazar wrote.
The World Bank’s intervention highlights concerns that changes to the flood-recovery housing programme could leave some of Balochistan’s poorest households without assistance, while also creating legal, operational and reputational risks for the authorities as the programme moves towards closure.
