ISLAMABAD: Pakistan and the Islamic Development Bank (IsDB) signed three loan agreements worth about $603 million to finance the M-6 Sukkur-Hyderabad Motorway Project, Poverty Graduation of Extremely Poor and Flood Affected Households Project (PGEP), and the Out-of-School Children project for the Azad Jammu and Kashmir.
The agreements were formalised in Islamabad following high-level talks between Pakistan’s Minister for Economic Affairs, Ahad Khan Cheema, and IsDB delegation, led by its Vice President, Dr Rami Ahmad.
The project agreements were officially signed by the Vice President of the Islamic Development Bank (IsDB), Dr Rami Ahmad and the Secretary of the Economic Affairs Division, Mr Muhammad Humair Karim.
Federal Minister for Economic Affairs, Mr Ahad Khan Cheema, the Federal Minister for Poverty Alleviation and Social Safety, Syed Imran Ahmad Shah, along with other senior government officials, witnessed the signing ceremony.
Under the agreements, IsDB will provide financing of $475 million for the M-6 Sukkur–Hyderabad Motorway, a key link to the proposed Peshawar-Karachi Motorway.
Households (PGEP) project, a landmark initiative aimed at transitioning ultra-poor households from dependency on cash assistance to sustainable livelihoods, resilience, and economic self-reliance. PGEP has a total outlay of $134.2 million, of which IsDB will contribute USD 118.4 million.
The Project will be implemented in 25 districts (20 districts selected based on Multidimensional Poverty Index (MPI 2024) and 5 most flood-affected districts of the 2022 and 2025 floods.
The project aims to reach 160,866 households and create 100,000 employment opportunities through integrated asset transfers, interest-free loans, skills development, rainwater harvesting, climate-smart agriculture, and business service providers’ interventions.
The PGEP reflects the government’s commitment to shifting from consumption-based safety nets to graduation-focused, resilience-driven development, aligned with national priorities and the Sustainable Development Goals (SDGs).
Furthermore, for the Out-of-School Children project of Azad Jammu and Kashmir, IsDB will provide $10 million, which would help bring about 60,000 out-of-school children back into classrooms, besides supporting the training for 4,000 teachers.
On the occasion, the IsDB Vice-President said that IsDB was keen on further expanding cooperation with Pakistan in the areas of mutual interest.
The Minister for Economic Affairs acknowledged and appreciated the continued IsDB support for Pakistan.
