ISLAMABAD: The Islamic Development Bank (IsDB) on Tuesday approved $603 million in financing for three major projects in Pakistan, including the 306-kilometre Sukkur-Hyderabad Motorway (M-6), a poverty graduation initiative, and an education programme in Azad Jammu and Kashmir.
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The agreements were signed by IsDB Vice-President Dr Rami Ahmad and Economic Affairs Division Secretary Muhammad Humair Karim. Under the deals, $475 million will support the M-6 motorway, $118.4 million will fund the Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project, and $10 million will be allocated for the Out-of-School Children project.
On the last day of his visit to #Pakistan, Islamic Development Bank Vice-President Operations, Dr. Rami Ahmad, undertook a high-level site visit to the Mohmand Dam & Hydropower Project — a cornerstone investment for #CleanEnergy generation, #water security & #ClimateAction in… pic.twitter.com/U34ShnyKTn
— IsDB Group (@isdb_group) January 20, 2026
The M-6 motorway, a key missing segment of Pakistan’s north-south corridor linking Karachi to Peshawar, is part of the China-Pakistan Economic Corridor’s Eastern Alignment. The $1.7 billion, six-lane highway will feature 89 bridges, 15 interchanges, and 243 underpasses, with construction expected to begin in April after finalising land acquisition. The project has faced delays and rising costs, with previous financing from the Saudi Fund for Development and Asian Development Bank.
The PGEP project targets 160,866 ultra-poor households in 25 districts, including areas hit by recent floods. It aims to transition beneficiaries from cash assistance to sustainable livelihoods, offering asset transfers, interest-free loans, skills development, climate-smart agriculture, and other resilience-building interventions. The initiative is expected to generate 100,000 employment opportunities.
For Azad Jammu and Kashmir, the Out-of-School Children project will help bring 60,000 children back to classrooms and train 4,000 teachers, addressing gaps in educational access.
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Dr Rami Ahmad said the IsDB is committed to expanding cooperation with Pakistan in infrastructure, social development, and human capital development, reflecting a focus on sustainable growth and long-term development priorities.