World Bank unhappy over fund diversion from Balochistan

ISLAMABAD: Expressing serious displeasure over reputational challenges, the World Bank has warned that redirecting funds from a multi-billion-rupee resilient housing programme for the flood-affected population to infrastructure projects would further aggravate poverty in Balochistan. “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 detailed communication to the federal and Balochistan governments. In this case, 84 per cent of eligible beneficiaries are ultra-poor and vulnerable, with 28pc earning less than $30 and another 26pc earning between $31 and $70 per month, while 39pc are tenants, 37pc are daily-wage labourers and 8pc are small farmers. These groups typically have limited savings, weak access to formal credit, few productive assets and low capacity to absorb shocks, WB said. After meetings with the federal minister for planning, the chief minister of Balochistan and others following the capping of housing support at 62,966 first-tranche beneficiaries as of June 22, 2026, and subsidy support to 97,000, World Bank’s country director Boloromaa Amgaabazar expressed concern over the decision as well as the handling of issues pertaining to fraud and corruption. Cautions exclusion could deepen poverty, disaster risks, social tensions She wrote to the federal secretaries for economic affairs and planning, as well as the secretary of Balochistan, that the capping and redirection of housing support was leaving 119,049 verified and eligible households without identified financing support. Its public disclosure before the finalisation of a jointly agreed communication strategy with the bank had also created risks, as households that had completed verification and signed the project undertakings might continue to expect housing assistance. She wrote that 66,120 e