Islamabad – Pakistan and the Islamic Development Bank (IDB) today signed three loan agreements worth a total of $603 million. The agreements aim to boost infrastructure, support poverty alleviation, and fund education initiatives.
The signing ceremony was held in Islamabad, attended by Minister for Economic Affairs Ahad Khan Cheema and Islamic Development Bank Vice President Dr. Rami Ahmed. Federal Minister for Poverty Alleviation and Social Protection Syed Imran Ahmed Shah and other senior officials were also present.
Under the first agreement, the IDB will provide $475 million for the M-6 Sukkur-Hyderabad Motorway project. The funding is expected to accelerate construction and enhance transportation connectivity across Sindh province.
The second agreement focuses on poverty alleviation for extremely poor and flood-affected households. The program, costing $134.2 million, will receive $118.4 million from the IDB. It aims to provide sustainable employment, economic independence, and a strong financial foundation to over 160,000 households in 25 districts of Pakistan.
The third agreement is dedicated to education, with the IDB providing $10 million for the out-of-school children’s project in Azad Jammu and Kashmir. The initiative seeks to improve access to education and reduce dropout rates in the region.
Minister Ahad Khan Cheema expressed his gratitude to the IDB for its continued support. He stated that these agreements highlight the strong partnership between Pakistan and the Islamic Development Bank and will contribute significantly to national development.
Dr. Rami Ahmed emphasized the IDB’s commitment to supporting Pakistan’s key development priorities. “We are focused on projects that enhance economic growth, reduce poverty, and improve access to quality education,” he said.
The IDB sign of these agreements comes at a crucial time as Pakistan continues to face economic challenges and seeks international support for critical infrastructure and social welfare projects.
Pakistan is in talks with Saudi Arabia to explore converting a $2 billion loan into a JF-17 fighter jet deal. This strategic move could strengthen defense ties and boost Pakistan’s aerospace capabilities significantly.
Officials noted that the combined impact of these three projects will create jobs, improve living standards, and strengthen economic resilience across Pakistan.
The ceremony concluded with assurances from both sides to closely monitor the implementation of all projects and ensure timely completion.
