The Islamic Development Bank (IsDB) has finalized deals with Pakistan to finance two major development projects as part of its ongoing support for the country’s infrastructure and social sector. The agreements were signed in Islamabad on 20 January 2026, marking a significant step in Pakistan IsDB cooperation.
USD 475 Million for M‑6 Sukkur Hyderabad Motorway
The first major project under these agreements is the M‑6 Sukkur Hyderabad Motorway, for which IsDB will provide USD 475 million. This motorway is a crucial link in the Karachi Peshawar national corridor, aimed at improving connectivity, reducing travel time, and boosting trade across Sindh and Punjab provinces. The funding will help accelerate construction of this 306-kilometer, six-lane motorway with modern facilities.
Social Development Project for Poverty Reduction
Alongside the motorway, IsDB has also approved funding for a Poverty Graduation Project targeting extremely poor and flood-affected households. With a total cost of USD 134.2 million (of which IsDB is contributing USD 118.4 million), the project will support households across 25 districts, providing asset transfers, training, and business support to help them achieve sustainable livelihoods.
Impact and Benefits
These projects are expected to have a significant impact on Pakistan’s economy and society. The motorway will facilitate trade and transportation, while the poverty graduation project will empower vulnerable families, create employment opportunities, and improve resilience in flood-affected areas. Both initiatives reflect a balanced focus on infrastructure and social development.
Strengthening Pakistan IsDB Cooperation
The deals demonstrate the Islamic Development Bank commitment to Pakistan’s long-term development goals. Officials from both sides emphasized the importance of continued collaboration to support key sectors like infrastructure, poverty alleviation, and education, and highlighted plans for future projects under the ongoing partnership.