Islamabad: Pakistan and the Jeddah-based Islamic Development Bank (IsDB) have signed three major financing agreements worth a total of $603 million, giving a significant boost to key development projects across the country.
The agreements, signed by IsDB Vice-President Dr. Rami Ahmad and Economic Affairs Division Secretary Muhammad Humair Karim, cover the Sukkur-Hyderabad Motorway (M-6), the Poverty Graduation of Extremely Poor and Flood-Affected Households Project (PGEP), and the Out-of-School Children Project in Azad Jammu and Kashmir.
Under the agreements, $475 million will fund the M-6 Sukkur-Hyderabad Motorway, a 306-kilometre stretch forming a critical link in the north-south corridor connecting Karachi to Peshawar. The six-lane motorway, part of the Eastern Alignment of the China-Pakistan Economic Corridor (CPEC), will feature 89 bridges, 15 interchanges, and 243 underpasses, designed for speeds up to 120 km/h. Construction is expected to begin in April 2026, with land acquisition in its final stage.
The PGEP, with total funding of $134.2 million (including $118.4 million from IsDB), aims to transform ultra-poor households into self-reliant and resilient communities. The project will cover 25 districts, 20 based on the Multidimensional Poverty Index 2024 and five most affected by floods in 2022 and 2025, supporting over 160,000 households with asset transfers, interest-free loans, skills training, climate-smart agriculture, and job creation.
The Out-of-School Children Project in AJK will receive $10 million to bring around 60,000 children back to school and provide training for 4,000 teachers.
IsDB Vice-President Dr. Ahmad emphasised the bank’s commitment to expanding cooperation with Pakistan in areas of mutual interest, highlighting these projects as part of a broader push for sustainable development, improved infrastructure, and social uplift.
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