ISLAMABAD: Pakistan has signed three financing agreements worth approximately $603 million with the Islamic Development Bank (IsDB) to support major infrastructure, poverty reduction and education projects, officials said on Tuesday.
The agreements were formalised in Islamabad during meetings between Federal Minister for Economic Affairs Ahad Cheema and an IsDB delegation led by Vice President Dr Rami Ahmad.
Under the first agreement, the IsDB will provide $475 million for the M-6 Sukkur–Hyderabad Motorway, a key segment of the planned Peshawar–Karachi motorway corridor aimed at improving national connectivity and trade flows.
The second agreement relates to the Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project. The initiative focuses on helping vulnerable households move from cash assistance to sustainable livelihoods through skills training, asset support and income-generating opportunities.
Officials said the PGEP project has a total cost of $134.2 million, with the IsDB contributing $118.4 million. The programme will be implemented in 25 districts, including five areas most affected by recent floods, and is expected to reach more than 160,000 households while creating around 100,000 employment opportunities.
A third agreement includes $10 million in IsDB financing for an out-of-school children project in Azad Jammu and Kashmir, aimed at enrolling approximately 60,000 children and supporting the training of 4,000 teachers.
Minister Ahad Cheema welcomed the continued partnership with the IsDB, while the bank’s delegation reaffirmed its interest in expanding cooperation with Pakistan in development sectors of mutual priority.
