The Government of Pakistan has signed financing agreements with the Islamic Development Bank (IsDB) worth $603 million for three major development initiatives spanning infrastructure, poverty alleviation, and education.
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The agreements were formalized in Islamabad during a ceremony attended by Pakistan’s Minister for Economic Affairs, Ahad Khan Cheema, Federal Minister for Poverty Alleviation Syed Imran Ahmad Shah, and an IsDB delegation led by Vice President Dr. Rami Ahmad.
Breakdown of the Funding:
- M-6 Sukkur-Hyderabad Motorway: The largest portion, $475 million, is allocated to this critical transport project. It is a key segment of the proposed Peshawar-Karachi Motorway and is expected to enhance regional connectivity, trade, and logistics.
- Poverty Graduation Program: $118.4 million is dedicated to the “Poverty Graduation of Extremely Poor and Flood-Affected Households” (PGEP) project. This initiative targets 160,866 households across 25 districts—including the 20 most impoverished and five severely flood-affected districts. It will provide asset transfers, interest-free loans, climate-smart agriculture, and skills development, aiming to create 100,000 employment opportunities.
- Out-of-School Children Project: $10 million will support an education project in Azad Jammu and Kashmir (AJK). The funds aim to reintegrate approximately 60,000 out-of-school children into the classroom and provide training for 4,000 teachers.
Official Statements & Strategic Importance:
IsDB Vice President Dr. Rami Ahmad emphasized the bank’s interest in expanding collaboration with Pakistan. Minister Ahad Khan Cheema acknowledged the bank’s ongoing support, highlighting its vital role in advancing Pakistan’s national development priorities in infrastructure, social safety, and education.
