Islamabad – Pakistan has secured three major financing agreements totaling $603.4 million with the Islamic Development Bank (IsDB), aimed at supporting priority projects in infrastructure, poverty alleviation, and education. The agreements were formalized during a meeting between IsDB Vice President of Operations Dr. Rami Ahmad and Pakistan’s Federal Minister for Economic Affairs, Ahad Khan Cheema.
The first project, the Poverty Graduation Project, has been allocated $118.4 million to assist 68,500 households by creating employment opportunities and building human capital. The program is expected to significantly reduce poverty levels by providing structured support to low-income families and fostering sustainable livelihoods.
The second initiative involves $475 million in funding for the M6 Motorway Project, a 120.8 km segment of the Peshawar-Karachi Motorway. This motorway is a critical component of Pakistan’s North-South corridor, aimed at improving transport connectivity, trade facilitation, and regional economic integration. Completion of the M6 stretch will enhance mobility, reduce logistics costs, and strengthen the national transport network.
The third project, the Out-of-School Children in Azad Jammu & Kashmir (AJ&K) initiative, has received $10 million in financing. This program targets 60,000 children who lack access to formal education, establishing 250 learning centers, upgrading 135 schools, and training 4,000 teachers. Additionally, the project aims to develop climate-resilient educational facilities, ensuring long-term sustainability and improved learning outcomes.
During the meeting, Minister Cheema praised IsDB for its ongoing support, highlighting the M6 Motorway as a flagship development project. He expressed optimism about continued collaboration with the bank on future priority initiatives, emphasizing the alignment of these projects with Pakistan’s broader development objectives.
Dr. Ahmad also briefed the minister on the successful completion of the IsDB Country Engagement Framework (CEF) 2023–2025, which provided over $956 million in financing, surpassing its target. Looking ahead, both sides discussed preparations for the new Member Country Partnership Strategy (MCPS) for 2026–2030. This strategy will align with Pakistan’s Uraan Economic Transformation Plan (2024–2029) and facilitate comprehensive engagement between the Government of Pakistan and the entire IsDB Group.
The agreements underscore the growing collaboration between Pakistan and the Islamic Development Bank, reflecting a shared commitment to infrastructure development, social welfare, and human capital enhancement. Analysts note that these projects are expected to accelerate economic growth, improve regional connectivity, and strengthen Pakistan’s education sector, contributing to broader socioeconomic progress.
With the execution of these initiatives, Pakistan aims to address critical development gaps while leveraging international partnerships to drive sustainable and inclusive growth. The financing packages also highlight IsDB’s continued role as a key partner in supporting strategic national projects across multiple sectors.
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