Pakistan, IsDB Sign $603 Million Agreements for Motorway, Poverty and Education Projects

Independent Report
Islamabad, January 20, 2026:
Pakistan and the Islamic Development Bank (IsDB) have signed three financing agreements worth approximately $603 million to support the M-6 Sukkur–Hyderabad Motorway, a poverty graduation initiative for extremely poor and flood-affected households, and an out-of-school children project in Azad Jammu and Kashmir.
The agreements were formalised in Islamabad following high-level talks between Federal Minister for Economic Affairs Ahad Khan Cheema and an IsDB delegation led by Vice President Dr Rami Ahmad. The agreements were signed by Dr Rami Ahmad and Secretary Economic Affairs Division Muhammad Humair Karim, and witnessed by Ahad Khan Cheema, Federal Minister for Poverty Alleviation and Social Safety Syed Imran Ahmad Shah, and senior government officials.
Under the accords, IsDB will provide $475 million for the M-6 Sukkur–Hyderabad Motorway, a critical segment of the proposed Peshawar-Karachi Motorway. An additional $118.4 million will finance the Poverty Graduation of Extremely Poor and Flood Affected Households (PGEP) project, which targets 160,866 households across 25 districts and aims to create 100,000 employment opportunities.
IsDB will also extend $10 million for an education project in Azad Jammu and Kashmir, supporting the reintegration of 60,000 out-of-school children and training of 4,000 teachers.
The IsDB Vice President reaffirmed the Bank’s interest in expanding cooperation with Pakistan, while the Minister for Economic Affairs appreciated IsDB’s continued development support