ISLAMABAD: Pakistan and the Islamic Development Bank (IsDB) have signed three financing agreements worth $603 million following high-level negotiations held in the federal capital.
According to an official statement issued by the Economic Affairs Division, the agreements were formally concluded after detailed discussions between both sides.
Under the agreements, the Islamic Development Bank will provide approximately $603 million in loans to support key infrastructure and social sector initiatives.
The financing includes the construction of a section of a motorway as well as two major social development projects.
The funded projects include the M-6 Sukkur–Hyderabad Motorway, the Poverty Graduation and Empowerment Project (PGEP) aimed at extremely poor and flood-affected households in selected underdeveloped districts and disaster-hit areas.
The statement further said that part of the financing will be utilized for the Out-of-School Children Project in Azad Jammu and Kashmir, aimed at improving access to education.
In addition, under a separate commitment of $700 million in short-term commodity financing by the IsDB, the bank has already disbursed $383.78 million during the first five months of the current fiscal year.
The agreements are expected to strengthen Pakistan’s infrastructure development and support vulnerable communities through targeted social sector interventions.
