Pakistan Secures $603 Million IsDB Loans for Critical Development
Pakistan and the Islamic Development Bank (IsDB) have formally solidified a significant partnership, signing three crucial financing agreements worth approximately $603 million. These landmark Pakistan IsDB loans are earmarked for transformative projects across the nation, specifically targeting vital infrastructure, comprehensive poverty alleviation, and essential education initiatives. This strategic collaboration aims to foster sustainable growth and improve living standards for countless citizens.
Formalizing the Landmark Agreements
The formalization of these pivotal agreements occurred in Islamabad following high-level discussions. Federal Minister for Economic Affairs, Ahad Khan Cheema, engaged with a distinguished IsDB delegation, which was led by Vice President Dr. Rami Ahmad. Subsequently, Dr. Rami Ahmad and Secretary Economic Affairs Division, Muhammad Humair Karim, officially signed the project documents. This significant event took place in the presence of numerous senior government officials, underscoring its national importance.
Boosting National Connectivity: M-6 Sukkur–Hyderabad Motorway
A substantial portion of the financing, specifically $475 million, will directly support the construction of the M-6 Sukkur–Hyderabad Motorway. This project represents a critical segment of the proposed Peshawar–Karachi Motorway network. Consequently, it promises to significantly enhance national connectivity and streamline trade flows across Pakistan. Furthermore, this infrastructure development is crucial for economic integration and regional development.
Empowering Communities: Poverty Graduation Project (PGEP)
Pakistan also secured vital funding for the Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project. This flagship initiative is meticulously designed to transition ultra-poor families from basic cash assistance towards achieving sustainable livelihoods. The project boasts a total outlay of $134.2 million, with the IsDB contributing a significant $118.4 million. Ultimately, PGEP aims to break cycles of poverty through a multi-faceted approach.
PGEP’s Far-Reaching Impact
The PGEP initiative will be implemented across 25 districts. Twenty of these districts were selected based on the Multidimensional Poverty Index (MPI 2024), while five are among the most severely flood-affected regions from the 2022 and 2025 floods. The program’s ambitious goals include supporting 160,866 households and generating approximately 100,000 jobs. This will be achieved through a combination of asset transfers, interest-free loans, skills development, rainwater harvesting, climate-smart agriculture, and comprehensive business support services. These interventions collectively support the goal of inclusive growth.
Investing in Future Generations: Out-of-School Children Project
In the education sector, the IsDB committed $10 million to the Out-of-School Children Project in Azad Jammu and Kashmir. This critical funding is projected to bring nearly 60,000 children back into classrooms, providing them with essential learning opportunities. Furthermore, the project will support the comprehensive training of approximately 4,000 teachers, thereby strengthening the regional educational infrastructure and improving learning outcomes.
Strengthening Partnerships: Impact of Pakistan IsDB Loans
Speaking at the occasion, IsDB Vice President Dr. Rami Ahmad expressed the bank’s strong desire to further expand cooperation with Pakistan across various areas of mutual interest. Minister for Economic Affairs Ahad Khan Cheema echoed these sentiments, appreciating IsDB’s unwavering support. He emphasized that these new Pakistan IsDB loans would significantly help strengthen critical infrastructure, promote inclusive economic growth, and ultimately improve social outcomes throughout the country. Consequently, this partnership stands as a testament to shared development goals.
