ASIATODAY.ID, ISLAMABAD — The Islamic Development Bank (IsDB) has sealed three major financing agreements worth a combined $603.4 million with the Government of Pakistan, marking one of the country’s most significant development funding packages this year.
The agreements were signed in Islamabad on January 22, 2026 by IsDB Vice President for Operations Dr. Rami Ahmad, witnessed by Federal Minister for Economic Affairs Ahad Khan Cheema and senior government officials, underscoring strong multilateral backing for Pakistan’s economic and social development agenda.
Jobs, Human Capital, and Livelihoods
The first agreement, valued at $118.4 million, is designed to transform the livelihoods of 68,500 households, with a strong focus on job creation and human capital development—a critical pillar as Pakistan seeks inclusive growth amid economic pressures.
$475 Million Motorway to Close Pakistan’s North–South Gap
The largest portion of the financing—$475 million—will fund the M6 Motorway Project, covering 120.8 kilometers of the Peshawar–Karachi Motorway.
The project will close a critical missing link in Pakistan’s north–south transport corridor, significantly improving logistics efficiency, trade flows, and national connectivity.
Education Lifeline for 60,000 Out-of-School Children
The third agreement, worth $10 million, targets one of Pakistan’s most pressing social challenges: access to education. The project will:
– Reach 60,000 out-of-school children through non-formal education pathways
– Upgrade 135 schools and establish 250 learning centers
– Train 4,000 teachers
– Construct flexible and climate-resilient education facilities
Strategic Signal
Together, the agreements signal renewed confidence by IsDB in Pakistan’s development trajectory, combining infrastructure, social inclusion, and human capital investment into a single, coordinated financing push. (SPA)
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