Pakistan Misuses World Bank Funds Allocated for Flood-Affected Balochistan
Islamabad, August 11: Pakistan has reportedly misused funds allocated by the World Bank for flood victims in Balochistan. The World Bank expressed its displeasure after Pakistan redirected money from a multi-billion rupee housing program for flood-affected individuals to infrastructure projects.
In a detailed letter sent to the federal and Balochistan governments, the World Bank highlighted that the issue for these families extends beyond just a lack of housing assistance. Their pre-existing economic and social vulnerabilities could exacerbate over time, worsening their situation.
According to the bank, 84% of the eligible beneficiaries are extremely poor and vulnerable. Among them, 28% of families earn less than $30 a month, while 26% earn between $31 and $70. Approximately 39% of these families are renters, 37% are daily wage laborers, and 8% are small farmers.
As reported by the Pakistani daily Dawn, the World Bank noted that these families typically have very limited savings, poor access to formal loans, and few productive resources to utilize during economic crises.
Boloroma Amgabar, the World Bank’s Country Director, informed federal planning and economic affairs secretaries, as well as the Balochistan secretary, that by June 22, 2026, housing assistance had been restricted to 62,966 first-phase beneficiaries, while subsidy support was limited to 97,000 families.
Following this decision, there is no clear source of financial assistance left for 119,049 verified and eligible families.
The World Bank also pointed out that the decision was made public before finalizing a joint communication strategy with the bank, potentially causing confusion among families who had completed the verification process and signed project-related documents.
According to the bank, 66,120 complaints regarding exclusion from housing assistance had already been recorded in the project’s complaint management system by the cutoff date.
The World Bank instructed the government to inform each complainant personally and formally about the decision. The letter also emphasized the need to retain written proof of communication with beneficiaries and share it with the bank.
The bank deemed this crucial, as a transparent and reliable grievance redressal system would mitigate legal, administrative, and reputational risks in the event of discontinuing this project component.
The World Bank warned that excluding eligible families from housing assistance could exacerbate their difficulties on multiple levels. Low-income families might have to divert funds from essential needs like food, health, and children’s education to repair and maintain temporary shelters.
Some families may even be forced to take loans or sell their productive assets.
Meanwhile, families lacking resources to build strong and disaster-resistant homes may be compelled to live in damaged or unsafe houses. This could increase their risk during future disasters such as floods, storms, earthquakes, and extreme heat.
The World Bank also highlighted that the issue is not solely economic. Excluding verified and eligible beneficiaries could foster feelings of injustice and discrimination.
This could weaken public trust in government institutions and development programs, increasing complaints and social tensions. The bank noted that similar risks have been observed in other housing reconstruction programs.
