ISLAMABAD: The Pakistani government has signed three different agreements with the Islamic Development Bank to secure $603 million in financing. The financing will help Pakistan to speed up development, reduce poverty, and broaden the scope of education.
The government stated that the new funding would enhance economic resilience while promoting inclusive and sustainable growth.
Major investment targets national connectivity
Both sides finalized agreements in Islamabad after high-level talks between Federal Minister for Economic Affairs Ahad Khan Cheema and an IsDB delegation led by Vice President Dr Rami Ahmad. Secretary Economic Affairs Division Muhammad Humair Karim and Dr Rami Ahmad signed the project documents in the presence of senior officials, underscoring the importance both sides attach to the partnership.
Under the financing package, IsDB will provide $475 million for the M-6 Sukkur–Hyderabad Motorway. Authorities consider this route a vital segment of the broader Peshawar–Karachi Motorway network. Officials expect the project to improve national connectivity, facilitate smoother trade flows, and reduce travel time between key economic hubs. Moreover, planners believe the motorway will stimulate regional development by enhancing access to markets and investment opportunities.
Poverty and education initiatives gain fresh momentum
Pakistan also secured funding for the Poverty Graduation of Extremely Poor and Flood-Affected Households project, a flagship initiative designed to move families from cash assistance toward sustainable livelihoods. The programme carries a total cost of $134.2 million, with IsDB contributing $118.4 million.
The project will operate in 25 districts, including 20 selected under the Multidimensional Poverty Index 2024 and five among the most flood-affected areas from the 2022 and 2025 disasters. The initiative aims to support 160,866 households and generate nearly 100,000 jobs through asset transfers, interest-free loans, skills training, climate-smart agriculture, and small business support.
In addition, IsDB will provide $10 million for the Out-of-School Children Project in Azad Jammu and Kashmir. Officials expect the programme to bring around 60,000 children back into classrooms while supporting training for about 4,000 teachers.
Dr Rami Ahmad said the bank wanted to expand cooperation with Pakistan in priority sectors.
Meanwhile, Federal Minister for Economic Affairs Ahad Khan Cheema said the financing would strengthen infrastructure development, enhance growth, and improve social progress in the country.
