Pakistan has signed three financing agreements worth about $603 million with the Islamic Development Bank (IsDB) to support major infrastructure and social development projects.

The agreements were signed in Islamabad after talks between Economic Affairs Minister Ahad Khan Cheema and an IsDB delegation led by Vice President Dr. Rami Ahmad.

Under the main deal, IsDB will provide $475 million for the M-6 Sukkur-Hyderabad Motorway. This road is a key part of the planned Peshawar-Karachi motorway corridor and aims to improve national connectivity.

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Another agreement focuses on reducing extreme poverty through the Poverty Graduation of Extremely Poor and Flood-Affected Households project. The total cost of this program is $134.2 million, with IsDB contributing $118.4 million.

The project will be carried out in 25 districts, including areas highlighted in Pakistan’s Multidimensional Poverty Index 2024 and regions badly hit by floods in 2022 and 2025.

Officials say the initiative will support 160,866 households and help create nearly 100,000 jobs through skills training, interest-free loans, asset support, climate-smart farming, and small business services.

A third agreement includes $10 million in IsDB funding for an education project in Azad Jammu and Kashmir. The plan aims to bring around 60,000 out-of-school children back into classrooms and train 4,000 teachers.

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Speaking at the signing ceremony, Dr Rami Ahmad said IsDB wants to expand cooperation with Pakistan in areas of shared development goals.

Minister Ahad Khan Cheema thanked the bank for its continued support, calling the partnership important for Pakistan’s growth and stability.