Pakistan and the Islamic Development Bank (IsDB) signed three loan agreements worth a total of $603 million on Tuesday. The agreements were signed by the IsDB Vice President and the Secretary of the Economic Affairs Division. Federal ministers and senior officials also attended the ceremony.
The largest loan, $475 million, will fund the M-6 Sukkur to Hyderabad Motorway project. This motorway is a key section of the planned Peshawar to Karachi Motorway. Officials said the project will improve connectivity and boost trade across Pakistan.
Another agreement with the Islamic Development Bank will support a poverty alleviation program for families affected by floods. The total cost of this project is $134.2 million, with IsDB contributing $118.4 million. The program will be implemented across 25 districts in Pakistan.
The IsDB will also fund a $10 million initiative in Azad Kashmir. This project aims to support out-of-school children and improve educational access in the region.
The government said these agreements demonstrate strong collaboration between Pakistan and the Islamic Development Bank. Officials emphasized that the funds will be used efficiently to boost infrastructure, social welfare, and education.
Meanwhile, Pakistan is preparing to request a rollover of a $3 billion loan from the United Arab Emirates (UAE). The Prime Minister will write to UAE President Sheikh Mohamed bin Zayed Al Nahyan to extend three tranches before their maturity dates.
Sources said $1 billion will mature on January 17, another $1 billion on January 23, and the remaining $1 billion in July. The UAE funds are currently deposited in the State Bank of Pakistan and support the country’s balance of payments.
These loan agreements with the Islamic Development Bank and the pending UAE rollover highlight Pakistan’s efforts to secure international financing for infrastructure, social development, and economic stability.
In other news read more about: Pakistan Secures $1.38 Billion In New Foreign Loans In July-August
