Pakistan has moved to strengthen its development financing partnerships with the Islamic Development Bank (IsDB) and the World Bank, with discussions covering infrastructure development, trade financing, railway modernisation, climate resilience and social-sector investment. During meetings on the sidelines of the 2026 World Bank Group and International Monetary Fund Annual Meetings in Bangkok, Federal Minister for Economic Affairs Ahad Khan Cheema held discussions with senior officials of both institutions to accelerate ongoing cooperation and improve the delivery of development projects. The engagements focused on turning financial commitments and partnership frameworks into projects with clear timelines, effective implementation and measurable benefits for the country.
Pakistan and the IsDB Group discussed cooperation under the Member Country Partnership Strategy for 2026 to 2030, which envisages approximately $5.6 billion in indicative financing. Cheema met IsDB Group Chairman Dr. Muhammad Sulaiman Al Jasser and congratulated him on his re-election for a second five-year term, while reaffirming Pakistan’s confidence in his leadership. The minister welcomed the proposed financing framework but stressed that the indicative amount needed to translate into a concrete pipeline of well-prepared projects. He called for clear timelines covering financing approvals, disbursements and implementation to ensure that planned resources reach development initiatives efficiently.
Infrastructure remained a major area of discussion, particularly the M-6 Sukkur-Hyderabad Motorway and the ML-1 Railway Upgradation Project. Cheema appreciated the IsDB’s financing of $475 million for the M-6 motorway, which is intended to strengthen road connectivity and support movement between key economic centres. He also highlighted the strategic importance of upgrading the ML-1 railway line to modernise Pakistan’s railway network, improve transport links and strengthen the country’s economic competitiveness. The minister sought increased IsDB support for the railway project and called for close coordination with the Asian Development Bank and other financing partners to advance project preparation and speed up implementation.
Health-related cooperation was another component of the discussions. Cheema welcomed the IsDB’s support for Pakistan’s polio eradication programme, including the recent approval of $100 million for Phase V. The funding forms part of broader cooperation aimed at supporting public health priorities alongside infrastructure and economic development. Pakistan’s development agenda requires investment across multiple sectors, and the government is seeking to use partnerships with multilateral institutions to support projects that address both immediate needs and longer-term economic challenges.
The minister also called for a coordinated approach across the IsDB Group to expand trade finance, support small and medium-sized enterprises, encourage infrastructure investment and mobilise private capital. The proposed approach would involve the Islamic Trade Finance Corporation, Islamic Corporation for the Development of the Private Sector, Islamic Corporation for the Insurance of Investment and Export Credit, and the IsDB Institute. These institutions have different roles across trade finance, private-sector development, investment risk protection and knowledge support. Better coordination could help Pakistan access a wider range of financial instruments for exports, energy transition projects and public-private partnerships.
Cheema highlighted that the Islamic Trade Finance Corporation had mobilised more than $1 billion in trade financing for Pakistan during fiscal year 2025-26. He also sought more competitive terms for future facilities, referring to the country’s improving macroeconomic and credit profile. The request reflects Pakistan’s interest in securing financing that supports trade and private-sector activity while managing borrowing costs. IsDB Group Chairman Al Jasser commended the government’s economic development vision and reaffirmed the group’s commitment to supporting Pakistan’s priorities. Both sides emphasised transformational investment, effective implementation and measurable development results as central objectives of their partnership.
Alongside the IsDB engagement, Pakistan and the World Bank agreed to accelerate implementation of the Country Partnership Framework for 2026 to 2035. Cheema, who also serves as Pakistan’s governor to the World Bank Group, met Anna Bjerde, the bank’s managing director of operations, to discuss the framework’s implementation. The minister called for stronger technical and financial assistance, integrated programmes across sectors and digital monitoring systems to track progress and assess the impact of funded initiatives. He stressed that development priorities must be supported by practical arrangements that help projects move from approval to execution without unnecessary delays.
Project preparation and financing predictability were highlighted as important requirements for faster implementation. Cheema called for dedicated Project Readiness Facilities to improve project preparation, strengthen planning and expedite approvals. He also emphasised that concessional financing must be used efficiently to maximise development benefits while protecting Pakistan’s debt sustainability. Such financing can support priority investments on more favourable terms than many commercial alternatives, but its effectiveness depends on the quality of project design, timely execution and the ability to deliver the intended economic and social outcomes.
The World Bank discussions covered human development, climate resilience, water and sanitation, and broader economic transformation. Cheema stressed the need to prioritise sectors with strong employment potential to create more job opportunities and promote inclusive growth. He also sought enhanced support for the ML-1 railway upgrade and discussed the proposed concept of an Economic Railway Corridor along the approximately 1,800-kilometre railway line. The corridor vision aims to strengthen connectivity and unlock economic opportunities through improved transport infrastructure. The proposed Minerals Compact was also discussed as part of efforts to advance Pakistan’s minerals sector.
Bjerde reaffirmed the World Bank’s commitment to supporting Pakistan’s priority sectors and working with the government to improve operational efficiency and accelerate project delivery. The two sides agreed to deepen cooperation under the Country Partnership Framework and ensure that development financing produces timely and sustainable benefits for the public.
The meetings with both multilateral institutions underline Pakistan’s focus on securing development resources while improving the systems used to prepare, finance and implement projects. The $5.6 billion indicative IsDB financing framework provides a broad basis for cooperation through 2030, while the World Bank partnership extends to 2035. However, the eventual impact will depend on project readiness, financing approvals, coordination among development partners and the government’s ability to implement initiatives on schedule. Pakistan has emphasised that concessional resources should support measurable progress in infrastructure, employment, trade, public health and climate resilience while maintaining a sustainable debt position.
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