Pakistan and the Islamic Development Bank (IsDB) have reaffirmed their commitment to a results-oriented partnership focused on development financing, strategic investments and effective project implementation.
The commitment emerged during a meeting between Minister for Economic Affairs Ahad Khan Cheema and IsDB Chairman Dr Muhammad Sulaiman Al Jasser in Bangkok, Thailand.
The meeting took place on the sidelines of the 2026 World Bank Group-IMF Annual Meetings. Both sides discussed accelerating cooperation under Pakistan’s Member Country Partnership Strategy (MCPS) for 2026–2030.
IsDB Strategy Envisages $5.6 Billion in Financing
Cheema welcomed the partnership strategy, which envisages approximately $5.6 billion in indicative financing from the IsDB Group.
He stressed the need to translate the proposed financing into a pipeline of well-prepared projects. He also called for clear timelines for financing approvals, disbursements and implementation.
The minister congratulated Al Jasser on his re-election for a second five-year term and reaffirmed Pakistan’s confidence in his leadership.
IsDB Chairman Al Jasser commended the government’s economic development vision and reaffirmed the group’s commitment to supporting Pakistan’s development priorities.
Support for Motorway and Polio Eradication
Cheema appreciated the IsDB’s $475 million financing for the M-6 Sukkur-Hyderabad Motorway.
He also welcomed the bank’s continued support for Pakistan’s polio eradication programme, including the recent approval of $100 million for Phase V.
These initiatives form part of the broader development cooperation between Pakistan and the IsDB Group.
Pakistan Seeks Greater Support for ML-1 Railway
The minister highlighted the strategic importance of the ML-1 Railway Upgradation Project in modernizing Pakistan’s railway network, improving connectivity and strengthening economic competitiveness.
He called for enhanced IsDB support and closer coordination with the Asian Development Bank and other co-financiers. The aim is to advance project preparation and speed up implementation.
The proposed railway upgrade is a key infrastructure priority for improving transport capacity and connectivity.
Trade Financing and Future Cooperation
Cheema said Pakistan had mobilized more than $1 billion in trade financing through the International Islamic Trade Finance Corporation (ITFC) during fiscal year 2025–26.
He also sought more competitive terms for future financing facilities, citing improvements in Pakistan’s macroeconomic and credit profile.
The discussions reflect Pakistan’s efforts to mobilize development funding for infrastructure, public health and trade while strengthening cooperation with international financial institutions.
Both sides reaffirmed their commitment to turning the 2026–2030 partnership strategy into concrete projects with clear implementation targets and measurable development outcomes.
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