Pakistan, Islamic Development Bank Sign $603 Million in Financing Agreements
Islamabad : Pakistan has signed three financing agreements worth a combined $603 million with the Islamic Development Bank (IsDB) to support major infrastructure and social sector projects, the Economic Affairs Division said on Tuesday.
According to an official statement, the agreements were finalized following high-level negotiations held in Islamabad. Under the deals, the IsDB will extend approximately $603 million in loans aimed at improving connectivity and strengthening social protection and education initiatives.
The financing package includes funding for a section of the M-6 Sukkur–Hyderabad Motorway, a key national infrastructure project intended to enhance transport links and economic activity. It also covers two major social sector initiatives, including a poverty alleviation program targeting extremely poor and flood-affected households in selected underdeveloped districts and disaster-hit areas.
In addition, part of the financing will be used to support a project focused on out-of-school children in Azad Jammu and Kashmir, aimed at improving access to education in underserved communities.
Separately, the Economic Affairs Division noted that the Islamic Development Bank has also committed $700 million under a short-term commodity financing facility. Of this amount, $383.78 million has already been disbursed during the first five months of the current fiscal year, providing additional support to Pakistan’s external financing needs.
