Pakistan signed three financing agreements worth $603.4 million with the Islamic Development Bank (IsDB) to boost infrastructure and social programs. The deals were inked between IsDB Vice President Operations Dr. Rami Ahmad and Pakistani officials. The signing took place in Islamabad with key ministers and senior government representatives present.
Under the agreements, $118.4 million will fund the Poverty Graduation Project, benefiting 68,500 households by creating jobs and enhancing human capital development. Another $475 million will go to the M6 Motorway Project, connecting a 120.8km section of the Peshawar–Karachi Motorway. This project will bridge a key gap in Pakistan’s North-South corridor.
Read more: Islamic banking must be reflected in practice, not just name
Additionally, $10 million will support the Out-of-School Children in AJ&K Project, helping 60,000 children access non-formal education. The project will upgrade 135 schools, establish 250 centres, train 4,000 teachers, and build climate-resilient learning facilities. Officials said the initiative will significantly improve education access in remote areas.
Dr. Rami Ahmad arrived in Islamabad on January 18 for a four-day official visit. The trip aims to strengthen strategic cooperation, advance IsDB-financed projects, and engage with Pakistani leadership on national development priorities. Discussions will also focus on the bank’s new Member Country Partnership Strategy for Pakistan.
Read more: Pakistani fintech secures $52m to grow Islamic finance business
The IsDB’s support aligns with Pakistan’s development vision under the “Uraan Pakistan” plan, following the completion of the 2023-2025 Country Engagement Framework. Officials noted the agreements will enhance sustainable development, infrastructure, education, and social welfare programs across the country.