Pakistan and the Islamic Development Bank have signed three loan agreements totaling around $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 Azad Jammu and Kashmir.
The agreements were formalized in Islamabad after high-level talks between Economic Affairs Minister Ahad Khan Cheema and a Bank delegation led by Vice President Rami Ahmad. Signed by Ahmad and Economic Affairs Division Secretary Muhammad Humair Karim, the ceremony was witnessed by Cheema and Poverty Alleviation and Social Safety Minister Syed Imran Ahmad Shah, along with other senior government officials.
Under the agreements, the Bank would provide financing of $475 million for the M-6 Sukkur-Hyderabad Motorway, a key link to the proposed Peshawar-Karachi Motorway. Additionally $118.4 million—of a total outlay of $134.2 million—are earmarked for the PGEP, aimed at transitioning ultra-poor households from dependency on cash assistance to sustainable livelihoods, resilience, and economic self-reliance.
The PGEP would be implemented in 25 districts—20 based on Multidimensional Poverty Index and five most flood-affected districts of the 2022 and 2025 floods—with an aim 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.
The Out-of-School Children project envisages $10 million from the Bank, helping bring about 60,000 out-of-school children back into classrooms, besides supporting training for 4,000 teachers.
Addressing the signing ceremony, VP Ahmad said the Bank was keen on further expanding cooperation with Pakistan in areas of mutual interest. Minister Cheema acknowledged and appreciated the Bank’s continued support for Pakistan.