Pakistan and the Islamic Development Bank (IsDB) have signed three financing agreements worth around $603 million to support major infrastructure, poverty alleviation, and education projects across the country.
The agreements were formalized in Islamabad following high-level talks between Federal Minister for Economic Affairs Ahad Khan Cheema and an IsDB delegation led by Vice President Dr Rami Ahmad. The project documents were signed by Dr Rami Ahmad and Secretary Economic Affairs Division Muhammad Humair Karim, in the presence of senior government officials.
Under the deals, IsDB will provide $475 million for the M-6 Sukkur–Hyderabad Motorway, a critical segment of the proposed Peshawar–Karachi Motorway network aimed at improving national connectivity and trade flows.
Pakistan also signed financing for the Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project, a flagship initiative designed to move ultra-poor families from cash assistance toward sustainable livelihoods. The project has a total outlay of $134.2 million, with IsDB contributing $118.4 million.
PGEP will be implemented in 25 districts, including 20 selected through the Multidimensional Poverty Index (MPI 2024) and five of the most flood-affected districts from the 2022 and 2025 floods. The programme aims to support 160,866 households and generate around 100,000 jobs through asset transfers, interest-free loans, skills development, rainwater harvesting, climate-smart agriculture, and business support services.
In the education sector, IsDB will provide $10 million for the Out-of-School Children Project in Azad Jammu and Kashmir, which is expected to bring nearly 60,000 children back into classrooms and support training for about 4,000 teachers.
Speaking on the occasion, IsDB Vice President Dr Rami Ahmad said the bank was keen to further expand cooperation with Pakistan in areas of mutual interest.
Minister for Economic Affairs Ahad Khan Cheema appreciated IsDB’s continued support, noting that the financing would help strengthen infrastructure, promote inclusive growth, and improve social outcomes across the country.