Pakistan IsDB Financing Agreements Signed
Pakistan and the Islamic Development Bank have signed major financing agreements aimed at strengthening infrastructure, reducing poverty, and improving access to education. The total value of the Pakistan IsDB financing agreements stands at around $603 million, reflecting continued cooperation between the two sides for long-term development goals. These agreements were finalized in Islamabad after high-level discussions involving senior government officials and IsDB representatives.
The Pakistan IsDB financing agreements focus on addressing key challenges faced by the country, including weak transport links, rising poverty after floods, and limited educational access in remote regions. By targeting multiple sectors simultaneously, the agreements are designed to support inclusive growth and improve living standards across different provinces.
- Agreements signed in Islamabad after official talks
- Total financing is worth approximately $603 million
- Focus on infrastructure, poverty alleviation, and education
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High-Level Talks Strengthen Pakistan’s IsDB Financing Cooperation
The signing ceremony took place following talks between Federal Minister for Economic Affairs Ahad Khan Cheema and an Islamic Development Bank delegation led by Vice President Dr Rami Ahmad. The project documents were formally signed by Dr Rami Ahmad and Secretary Economic Affairs Division Muhammad Humair Karim in the presence of senior officials, highlighting the importance of the partnership.
These discussions emphasized expanding cooperation in areas of mutual interest while ensuring that development financing delivers measurable social and economic benefits. Pakistan’s IsDB financing agreements were presented as a strategic step toward improving national capacity and supporting vulnerable communities.
- Meeting held between the Pakistani leadership and the IsDB delegation
- Agreements signed by senior officials from both sides
- Focus on sustainable and inclusive development outcomes
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M-6 Sukkur–Hyderabad Motorway Under Pakistan IsDB Financing Agreements
A major portion of the Pakistan IsDB financing agreements includes $475 million allocated for the M-6 Sukkur–Hyderabad Motorway. This motorway is a critical link in the proposed Peshawar–Karachi Motorway network, which aims to improve national connectivity and streamline trade routes across the country. The project is expected to reduce travel time and enhance transport efficiency.
Improved road infrastructure under the Pakistan IsDB financing agreements will support economic activity by enabling the smoother movement of goods and people. The M-6 motorway is also expected to contribute to regional development by improving access to markets and employment opportunities.
- $475 million financing for the M-6 Motorway
- Part of the Peshawar–Karachi Motorway network
- Aimed at boosting trade and transport efficiency
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Poverty Graduation Project for Extremely Poor and Flood-Affected Households
Another key component of the Pakistan IsDB financing agreements is the Poverty Graduation of Extremely Poor and Flood-Affected Households project. The total cost of this initiative is $134.2 million, with the Islamic Development Bank contributing $118.4 million. The project aims to move ultra-poor families away from dependency on cash assistance toward sustainable livelihoods.
The project will be implemented in 25 districts, including areas identified through the Multidimensional Poverty Index 2024 and districts severely affected by floods in 2022 and 2025. Through skills development, asset transfers, and business support, the Pakistan IsDB financing agreements seek to create long-term income opportunities for vulnerable households.
- Implemented in 25 selected districts
- Focus on flood-affected and high-poverty areas
- Designed to support sustainable livelihoods
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Employment and Livelihood Support Under the PGEP Project
The Poverty Graduation project under the Pakistan IsDB financing agreements is expected to support 160,866 households and generate around 100,000 jobs. The initiative includes a combination of financial assistance and practical support aimed at building resilience among poor families. This approach ensures that beneficiaries can gradually achieve economic stability.
Key interventions include interest-free loans, climate-smart agriculture practices, rainwater harvesting, and small business support services. By combining social protection with economic empowerment, the Pakistan IsDB financing agreements aim to reduce poverty in a lasting and measurable way.
- Support for over 160,000 households
- Around 100,000 jobs expected
- Focus on skills, assets, and climate resilience
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Education Support Through Pakistan IsDB Financing Agreements
In the education sector, the Pakistan IsDB financing agreements include $10 million for the Out-of-School Children Project in Azad Jammu and Kashmir. This initiative aims to bring nearly 60,000 out-of-school children back into classrooms, helping improve literacy and learning outcomes in the region.
The project also includes training support for about 4,000 teachers, ensuring better teaching quality and classroom management. By investing in both students and educators, the Pakistan IsDB financing agreements aim to strengthen the education system and reduce long-term learning gaps.
- $10 million allocated for education in AJK
- Nearly 60,000 children targeted
- Teacher training for improved learning quality
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Overview of Projects Under Pakistan IsDB Financing Agreements
The following table summarizes the key projects included in the Pakistan IsDB financing agreements and their financial allocations.
| Project Name | IsDB Financing | Key Objective |
|---|---|---|
| M-6 Sukkur–Hyderabad Motorway | $475 million | Improve national connectivity and trade |
| Poverty Graduation Project | $118.4 million | Support sustainable livelihoods |
| Out-of-School Children Project | $10 million | Increase school enrollment in AJK |
Expected Social and Economic Impact of Pakistan’s IsDB Financing Agreements
The Pakistan IsDB financing agreements are expected to deliver wide-ranging benefits by addressing infrastructure gaps, poverty challenges, and educational access. Improved road networks will support economic growth, while poverty reduction initiatives will help vulnerable households recover from flood-related losses.
Education-focused financing will contribute to long-term human development by bringing children back to school and improving teaching standards. Together, these efforts highlight the role of Pakistan’s IsDB financing agreements in supporting balanced and inclusive national development.
- Infrastructure growth supports trade and mobility
- Poverty reduction strengthens household resilience
- Education investment improves future workforce skills
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FAQs
What is the total value of the Pakistan IsDB financing agreements?
The total value of the Pakistan IsDB financing agreements is approximately $603 million, covering infrastructure, poverty alleviation, and education projects.
Which project received the largest share of IsDB financing?
The M-6 Sukkur–Hyderabad Motorway received the largest allocation, with $475 million provided under the Pakistan IsDB financing agreements.
Who signed the Pakistan IsDB financing agreements?
The agreements were signed by IsDB Vice President Dr Rami Ahmad and Secretary Economic Affairs Division Muhammad Humair Karim.
How many households will benefit from the Poverty Graduation project?
The project aims to support 160,866 households and create around 100,000 jobs across selected districts.
Which region will benefit from the education project?
The education project under the Pakistan IsDB financing agreements focuses on Azad Jammu and Kashmir, targeting out-of-school children and teacher training.
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