Pakistan gets $603m IsDB support for motorway, livelihoods, schools

January 20, 2026 (MLN): Pakistan has secured $603 million in financing from the Islamic Development Bank (IsDB) for three major development initiatives.

These initiatives include the M-6 Sukkur-Hyderabad Motorway, a poverty graduation program for flood-affected households, and an education project in Azad Jammu and Kashmir (AJK).

The agreements were signed in Islamabad during high-level talks between Pakistan’s Minister for Economic Affairs, Ahad Khan Cheema, and an IsDB delegation led by Vice President Dr Rami Ahmad.

The ceremony was attended by senior officials, including the Federal Minister for Poverty Alleviation and Social Safety, Syed Imran Ahmad Shah, according to the press release.

Under the agreements, IsDB will provide $475m for the M-6 Sukkur Hyderabad Motorway, a critical segment of the proposed Peshawar Karachi Motorway, expected to improve transport connectivity and support regional trade and logistics.

The Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP) project will receive $118.4 million of a total $134.2m budget from IsDB.

Targeting 25 districts including the 20 most impoverished districts identified by the Multidimensional Poverty Index 2024 and five severely flood-affected districts from 2022 and 2025 the program aims to reach 160,866 households.

It will provide integrated asset transfers, interest-free loans, climate smart agriculture, rainwater harvesting, and skills development, with an expected creation of 100,000 employment opportunities.

Separately, $10m in financing will support the Out-of-School Children project in AJK, targeting the reintegration of approximately 60,000 children into classrooms and training 4,000 teachers.

The IsDB Vice President emphasized the bank’s interest in expanding collaboration with Pakistan, while Minister Cheema acknowledged the ongoing support, highlighting its role in advancing infrastructure, poverty alleviation, and education in line with national development priorities.

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