World Bank warns Balochistan fund diversion could deepen poverty
The warning came after authorities limited housing assistance under a major reconstruction programme for flood-affected families in Balochistan. The bank said the decision could leave many verified households without financial support.
The World Bank said the affected families are already among the poorest and most vulnerable groups in the province. Without housing assistance, their existing financial and social problems could become even more serious.
Thousands of families face uncertainty
According to the World Bank, 84pc of eligible beneficiaries are classified as ultra-poor and vulnerable. About 28pc earn less than $30 a month, while another 26pc earn between $31 and $70.
The bank said 39pc of the eligible households are tenants, 37pc depend on daily-wage work and 8pc are small farmers. Most have limited savings, little access to formal loans and few assets to rely on during emergencies.
The World Bank raised its concerns after meetings with federal and provincial officials. These included the federal planning minister and the Balochistan chief minister.
The bank’s country director, Boloromaa Amgaabazar, expressed concern over the decision to limit housing assistance. She also raised questions about how fraud and corruption-related issues were being handled.
As of June 22, 2026, housing support had been capped at 62,966 first-tranche beneficiaries, while subsidy support was limited to 97,000 households. The bank said this left 119,049 verified and eligible families without identified financing support.
World Bank warns of growing poverty
The bank also objected to the public announcement of the changes before a joint communication strategy had been completed. It said families that had already completed verification and signed project documents could still expect housing assistance.
Another concern involved complaints from households excluded from the programme. The bank said 66,120 exclusion-related grievances had been registered through the project’s grievance system by the agreed cut-off date.
The World Bank called for every complainant to be contacted separately and formally informed about the decision. It also asked authorities to keep written proof or other verifiable evidence showing that the communication had been received.
The bank said a transparent system for handling complaints would be important to reduce legal, operational and reputational risks. It warned that poor communication could further damage public trust in the programme.
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Housing cuts could create wider problems
The World Bank said excluding verified families from housing support could create a cycle in which poverty and disaster risks continue to grow. Families unable to rebuild their homes may remain in unsafe or damaged structures.
For poor households, repairing temporary shelters can also take money away from basic needs. Families may have to reduce spending on food, healthcare or education to continue paying for housing repairs.
Some households could also be forced to borrow money or sell productive assets to survive. This could make their financial position even weaker over time.
The bank warned that families living in damaged homes would remain more exposed to future floods, storms, earthquakes and extreme heat. This could undermine the long-term recovery goals of the housing programme.
The situation could also increase public frustration among families who were verified as eligible but later excluded. The World Bank said perceptions of unfair treatment could weaken confidence in government institutions and development programmes.
