Pakistan is set to pursue approximately US$5.6 billion in indicative financing from the Islamic Development Bank (IsDB) Group for infrastructure development, trade financing, private-sector investment and polio eradication under its Member Country Partnership Strategy (MCPS) for 2026–2030.
Federal Minister for Economic Affairs Ahad Khan Cheema discussed the financing framework with IsDB Group Chairman Dr. Muhammad Sulaiman Al Jasser on the sidelines of the 2026 World Bank Group–IMF Annual Meetings in Bangkok on October 15.
The minister stressed the need to convert the indicative financing commitment into a pipeline of well-prepared projects, supported by clear timelines for financing approvals, disbursements and implementation.
IsDB Financing to Support Major Infrastructure Projects
Cheema appreciated IsDB’s US$475 million financing for the M-6 Sukkur–Hyderabad Motorway, a major infrastructure project aimed at improving connectivity and supporting economic activity.
He also highlighted the strategic importance of the ML-1 Railway Upgradation Project, which is expected to modernise Pakistan’s railway network, strengthen connectivity and improve economic competitiveness.
The minister sought enhanced IsDB support for ML-1 and called for close coordination with the Asian Development Bank and other co-financiers to accelerate project preparation and implementation.
He emphasised that timely financing decisions and effective coordination among development partners would be essential to advancing major infrastructure initiatives under the 2026–2030 partnership strategy.
$100 Million Approved for Polio Eradication
Pakistan also welcomed IsDB’s continued support for the country’s polio eradication programme, including the recent approval of US$100 million for Phase V.
The funding is part of broader development cooperation aimed at supporting Pakistan’s public health priorities. Sustained financing and implementation will remain important as the country continues its efforts to eliminate polio.
The discussions placed health financing alongside infrastructure development and trade as key areas of cooperation between Pakistan and the IsDB Group.
Government Seeks Greater Trade and Private-Sector Financing
Cheema called for a coordinated, whole-of-Group approach involving IsDB, the International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Development of the Private Sector (ICD), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and the IsDB Institute.
The proposed approach aims to expand financing opportunities across export finance, small and medium-sized enterprises (SMEs), infrastructure, public-private partnerships and the energy transition.
The minister also highlighted that ITFC mobilised more than US$1 billion in trade financing for Pakistan during FY2025–26. He sought more competitive terms for future facilities, citing the country’s improving macroeconomic and credit profile.
Greater access to trade finance and private capital could support exporters, businesses and investment projects, while coordinated financing arrangements could help mobilise resources across multiple sectors.
IsDB Reaffirms Commitment to Pakistan’s Development Priorities
Dr. Al Jasser commended the Government of Pakistan for its economic development vision and reaffirmed the IsDB Group’s commitment to supporting the country’s development priorities.
The meeting also marked an opportunity to strengthen cooperation following Dr. Al Jasser’s re-election for a second five-year term as IsDB Group chairman. Cheema congratulated him on his re-election and expressed confidence in his leadership.
Both sides reaffirmed their commitment to a strong, results-oriented partnership focused on transformational investments, effective project implementation and measurable development outcomes.
The proposed US$5.6 billion financing envelope under MCPS 2026–2030 provides a framework for future cooperation. Actual financing will depend on project preparation, approvals and implementation arrangements.