Rs115bn World Bank-funded flood rehabilitation project in Balochistan restructured quietly

Amid a blame game and fiduciary concerns, the Pakistan government has quietly downgraded the housing component of a World Bank-funded Rs115 billion flood rehabilitation project in Balochistan. The project, aimed at providing resilient homes to over 134,000 verified flood-affected families, has seen its remaining $155 million housing budget reduced to about 69,000 homes.

This decision, taken by the project steering committee led by Planning Minister Ahsan Iqbal and Balochistan Chief Minister Sarfraz Bugti, has diverted the funds towards roads and irrigation projects instead. The World Bank has also withdrawn its proposed $180 million additional financing. The restructuring comes amid investigations into alleged record tampering, duplicate claims, and multiple payments for the same housing units.

In addition, there were attempts to disrupt the ongoing probes. The decision reverses Prime Minister Shehbaz Sharif's promise of a resilient house for every family that lost one during the 2022 floods. Despite over 134,000 flood-hit families being surveyed and registered for assistance, the project steering committee has declined additional World Bank financing.

The planning commission has proposed satellite imagery for verification, and both the minister and the chief minister have ordered an independent high-level inquiry to ensure transparency and accountability. The commission has also raised serious corruption charges against certain officials, but the fact-finding committee could not access records in Balochistan.