Key Points
- Three agreements worth $603 million with the Islamic Development Bank (IsDB)
- Projects include M-6 Sukkur-Hyderabad Motorway, poverty graduation programme, and out-of-school children project in Azad Jammu and Kashmir
- Funding expected to create jobs, improve infrastructure and expand educational access
ISLAMABAD: Pakistan and the Islamic Development Bank (IsDB) signed three development agreements worth $603 million to support key infrastructure, social development, and education projects across the country.
According to an official statement, three agreements were formalised in Islamabad on Tuesday following high-level talks between Pakistan’s Minister for Economic Affairs, Ahad Khan Cheema, and an IsDB delegation led by Vice President Dr Rami Ahmad.
The signing ceremony was witnessed by senior government officials, including the Federal Minister for Poverty Alleviation and Social Safety, Syed Imran Ahmad Shah.
Under the agreements, the IsDB will provide $475 million for the M-6 Sukkur–Hyderabad Motorway, a critical link in Pakistan’s proposed Peshawar-Karachi Motorway network.
The bank will also contribute $118.4 million to the Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project, which aims to help ultra-poor families transition from dependency to sustainable livelihoods.
The PGEP will cover 25 districts, including 20 selected based on the Multidimensional Poverty Index 2024 and five most affected by recent floods.
The project aims to reach 160,866 households and create 100,000 employment opportunities through integrated support, including asset transfers, interest-free loans, skills development, climate-smart agriculture, and business services.
Additionally, the IsDB will provide $10 million for the Out-of-School Children project in Azad Jammu and Kashmir, which is expected to bring 60,000 children back into schools and provide training for 4,000 teachers.
The agreements reaffirm IsDB’s commitment to supporting Pakistan’s development priorities. At the same time, the government has been maintaining its focus on sustainable economic growth, poverty reduction, and education as part of the national Sustainable Development Goals.
