ISLAMABAD: Pakistan and the Islamic Development Bank (IsDB) have signed three loan agreements worth around $603 million to fund multiple development projects, the Pakistani information ministry confirmed.
The agreements cover the M-6 Sukkur–Hyderabad Motorway, the Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project, and the Out-of-School Children initiative in Azad Jammu and Kashmir.
The deals were formalized in Islamabad after talks between Pakistan’s Economic Affairs Minister Ahad Cheema and an IsDB delegation led by Vice President Dr. Rami Ahmad.
IsDB will provide $475 million for the M-6 Sukkur–Hyderabad Motorway, a key section of the proposed Peshawar–Karachi Motorway.
The PGEP project, aimed at helping ultra-poor and flood-affected households achieve economic self-reliance, will receive $118.4 million from IsDB out of a total budget of $134.2 million. It will be implemented in 25 districts—20 selected based on the 2024 Multidimensional Poverty Index and five heavily affected by floods in 2022 and 2025.
PGEP plans to reach 160,866 households and generate 100,000 jobs through asset transfers, interest-free loans, skills development, rainwater harvesting, climate-smart agriculture, and support from business service providers. The program aligns with Pakistan’s national priorities and the UN Sustainable Development Goals.
IsDB will also provide $10 million for the Out-of-School Children project in Azad Jammu and Kashmir. The project aims to reintegrate 60,000 children into classrooms and train 4,000 teachers.
The Economic Affairs Minister thanked IsDB for its continued support. Dr. Rami Ahmad said the bank was keen to expand cooperation with Pakistan in other areas of mutual interest.
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Last year, IsDB funded a project to reactivate out-of-work women doctors and announced a $100 million loan to support Pakistan’s polio eradication efforts.
