By Mehrab Shah Afridi
ISLAMABAD: Pakistan has signed loan agreements worth $603m with the Islamic Development Bank to support flood recovery efforts, expand access to education and strengthen long-term development, as senior bank officials reaffirmed their commitment to the country during a high-level visit.
The agreements were signed by the Islamic Development Bank’s vice-president, Dr Rami Ahmad, and Pakistan’s economic affairs secretary, Muhammad Humair Kareem. The financing is aimed at helping flood-affected communities recover from hardship while supporting education initiatives and major infrastructure projects.
A central component of the package is a comprehensive poverty alleviation program valued at about $134.2m, with the bank providing $118.4m in funding. The initiative will be implemented across 25 districts and is expected to reach more than 160,000 households. Officials said the program would focus on restoring livelihoods, promoting self-reliance and helping vulnerable families escape extreme poverty after repeated climate-related shocks.
The bank will also fund a $10m education project in Azad Kashmir targeting out-of-school children. The initiative aims to reintegrate 60,000 children into formal education and provide training for 4,000 teachers, with the goal of improving both access to schooling and the quality of education in underserved areas.
Speaking at the signing ceremony, Dr Ahmad said the Islamic Development Bank was committed to expanding cooperation with Pakistan in areas of mutual benefit. He highlighted the institution’s continued role in supporting sustainable development and building resilience against climate and economic challenges.
On the final day of his visit, Dr Ahmad travelled to Khyber Pakhtunkhwa to review progress on the Mohmand Dam and Hydropower Project, underlining its importance for clean energy, water security and climate resilience.
