Pakistan, Islamic Development Bank advance $5.6bn cooperation in infrastructure development

Pakistan and Islamic Development Bank (IsDB) advanced on Thursday $5.6 billion cooperation in infrastructure development, enhanced trade and polio eradication, an official statement read.

The development came as Federal Minister for Economic Affairs Ahad Khan Cheema met H.E. Dr. Muhammad Sulaiman Al Jasser, Chairman of the IsDB Group, on the sidelines of the 2026 World Bank Group–IMF Annual Meetings in Bangkok to discuss accelerating development cooperation under Pakistan’s Member Country Partnership Strategy (MCPS) 2026–2030.

The minister congratulated Dr Al Jasser on his re-election for a second five-year term and reaffirmed Pakistan’s confidence in his leadership.

“Welcoming the MCPS, which envisages approximately $5.6 billion in indicative IsDB Group financing, the minister emphasised the importance of translating the indicative financing envelope into a concrete pipeline of well-prepared projects, with clear timelines for financing approvals, disbursements and implementation,” the statement read.

The minister appreciated IsDB’s $475 million financing for the M-6 Sukkur–Hyderabad Motorway and welcomed its support for Pakistan’s polio eradication programme, including the recent approval of $100 million for Phase V.

Highlighting the strategic importance of the ML-1 Railway Upgradation Project for modernising Pakistan’s railway network, strengthening connectivity and enhancing economic competitiveness, he sought enhanced IsDB support for the project and urged close coordination with the Asian Development Bank and other co-financiers to advance project preparation and expedite implementation.

To further strengthen development cooperation and mobilise trade and private capital, the minister called for a coordinated, whole-of-Group approach involving IsDB, ITFC, ICD, ICIEC and the IsDB Institute to expand opportunities in export finance, SMEs, infrastructure, public-private partnerships and energy transition.

He also highlighted the mobilisation of over $1 billion in trade financing through ITFC during FY2025–26 and sought more competitive terms for future facilities, reflecting Pakistan’s improving macroeconomic and credit profile.

“H.E. Dr. Jasser commended the Government of Pakistan for its ambitious Economic Development vision and affirmed IsDB Group’s commitment to contribute to the attainment of Pakistan’s development priorities.

“Both sides reaffirmed the importance of a strong, results-oriented partnership focused on transformational investments, effective implementation and measurable development outcomes,” the statement said.

Pakistan, World Bank commit to accelerating partnership framework implementation

Pakistan and the World Bank have committed to accelerating implementation of the Country Partnership Framework 2026-2035, with a focus on project preparedness, concessional financing and investments in human development and climate resilience.

Federal Minister for Economic Affairs and Pakistan’s Governor to the World Bank Group (WBG), Ahad Khan Cheema, met Anna Bjerde, Managing Director of Operations, World Bank, on the sidelines of the 2026 World Bank Group–IMF Annual Meetings in Bangkok to discuss implementation of Pakistan’s Country Partnership Framework (CPF) 2026–2035.

The minister underscored the government’s resolve to translate the CPF’s objectives into tangible development outcomes, calling for enhanced technical and financial support, integrated multisectoral programs and digital monitoring systems to track progress and measure impact.

He emphasised the importance of stronger project preparedness through dedicated Project Readiness Facilities (PRFs), predictable financing and enhanced implementation support to expedite project approvals and execution.

The minister emphasised that concessional resources must be deployed efficiently to maximise development impact while safeguarding debt sustainability.

Discussions also covered WBG’s support for sectors critical to human development, climate resilience, water and sanitation and economic transformation, with the minister highlighting the importance of investments in sectors with high job-creation potential to expand employment opportunities and promote inclusive growth.

Cheema also discussed enhanced support for the ML-1 Railway Upgradation Project and the vision of an Economic Railway Corridor along the approximately 1,800-km railway line to strengthen connectivity and unlock economic opportunities, alongside the proposed Minerals Compact to advance Pakistan’s minerals sector.

Bjerde reaffirmed the World Bank’s commitment to supporting Pakistan’s priority sectors and working with the government to strengthen operational efficiency and accelerate project implementation.

Both sides agreed to deepen their cooperation to advance shared priorities under the CPF and ensure that development financing translates into timely, sustainable and measurable benefits for the people of Pakistan.