World Bank warns over Pakistan housing aid shift

Islamabad: The World Bank has raised serious alarm over the shift of funds earmarked for a multi-billion-rupee resilient housing programme in Balochistan, intended for flood-affected families. The bank conveyed its concern in a letter to federal authorities, stating that withdrawing housing assistance from eligible families could exacerbate existing socio-economic vulnerabilities over time, according to Dawn.The housing programme, benefiting 84% ultra-poor and vulnerable beneficiaries, faces a potential setback as the World Bank warns that the shift could deepen poverty and increase disaster-related vulnerabilities.

Around 28% of beneficiaries earn less than $30 a month, while 26% earn between $31 and $70. The bank noted that these households have limited savings, poor access to formal credit, and few productive assets, making them highly vulnerable to economic or natural shocks.According to the bank's Country Director Boloromaa Amgaabazar, the decision to cap housing support at 62,966 first-tranche beneficiaries and limit subsidy assistance to 97,000 households has left 119,049 eligible households without financing support.

The bank also expressed concern over the premature public announcement of the decision, which has already resulted in 66,120 exclusion-related grievances registered in the project's grievance management system.The World Bank urged for individual communication to each complainant, with written confirmation or verifiable proof of contact shared with the bank.

The bank warned that excluded families could be pushed into a cycle of deeper poverty and higher disaster risks, potentially forcing them to divert funds from essential needs to repair temporary shelters or take on debt.