Pakistan has signed three agreements worth approximately $603 million with the Islamic Development Bank (IsDB) to fund critical initiatives: the M-6 Sukkur-Hyderabad Motorway, the Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project, and an Out-of-School Children program in Azad Jammu and Kashmir.
The deals were finalized in Islamabad after discussions between Pakistan's Minister for Economic Affairs, Ahad Khan Cheema, and an IsDB delegation headed by Vice President H.E. Dr. Rami Ahmad. Signatories included Dr. Ahmad and Economic Affairs Division Secretary Muhammad Humair Karim, with witnesses such as Federal Minister for Poverty Alleviation and Social Safety Syed Imran Ahmad Shah and other senior officials.
IsDB's $475 million contribution will advance the M-6 Motorway, a vital segment of the planned Peshawar-Karachi corridor. The PGEP project, totaling $134.2 million with $118.4 million from IsDB, targets ultra-poor households in 25 districts 20 based on the 2024 Multidimensional Poverty Index and five hit hardest by the 2022 and 2025 floods.
It aims to support 160,866 households, generate 100,000 jobs, and promote self-reliance through asset transfers, interest-free loans, skills training, rainwater harvesting, climate-smart agriculture, and business services. This marks a shift from cash aid to sustainable, SDG-aligned development.
Additionally, $10 million will fund the Azad Jammu and Kashmir project, enrolling 60,000 out-of-school children and training 4,000 teachers.
IsDB Vice President Dr. Ahmad voiced enthusiasm for deepening ties with Pakistan, while Minister Cheema thanked the bank for its ongoing support.
