Pakistan, Islamic development bank ink $200m financing agreement

ISLAMABAD: Pakistan and the Islamic Development Bank (IsDB) on Friday singed a financing agreement worth $200 million for Sindh Flood Emergency Housing Reconstruction Project, ARY News reported.

The signing of agreement came as a delegation from the Islamic Development Bank led by Director, IsDB Regional Hub Türkiye Dr Walid Abdelwahab is currently on a three-day visit to Pakistan.

The delegation called on Minister for Economic Affairs Ahad Khan Cheema, to discuss strengthening partnerships and promoting development initiatives.

Ahad Khan Cheema welcomed the Director, IsDB and said that the civilian award conferred upon President IsDB, is a testament to the strong and enduring partnership between the Bank and Government of Pakistan (GoP).

He acknowledged the efforts of the President IsDB in galvanizing the international support for the floods 2022 affectees, by pledging US$ 4.2 billion.

Dr Walid Abdelwahab thanked the Minister for Economic Affairs and informed that Pakistan is one of the founding members of the IsDB and the 3rd largest beneficiary of IsDB financing.

He assured full support to the government’s development vision and policies.

Both sides agreed that relations can be further strengthened through mutual collaboration and partnership.

Ahad Khan Cheema also witnessed the signing ceremony of financing agreement (worth US$ 200 million, equivalent to Euro 188.70 million) for Sindh Flood Emergency Housing Reconstruction Project, held at Prime Minister’s Office.

Secretary Economic Affairs Division Dr Kazim Niaz, and Dr Walid Abdelwahab, signed the financing agreement, which reflects confidence in international financial institutions in Pakistan’s economy and its future.

The project aims to construct 700,000 houses, benefiting an estimated 4.2 million people in rural areas, supporting creation of 75,000 water, sanitation, and hygiene (WASH) facilities, and significantly improving conditions for over 1.3 million individuals.

Meanwhile, the two sides exchanged the IsDB’s Country Engagement Framework (CEF) Document (2023-25), outlining the medium-term strategic directions and priorities of the IsDB Group partnership with Pakistan up to 2025.

The IsDB Group Country Engagement Framework is focused on boosting recovery, tackling poverty and building resilience, and green economic growth which is in line with GOP’s vision and development priorities.

The Minister for Economic Affairs appreciated the role and support of IsDB for Pakistan at a challenging time. He assured to further strengthen the relations with IsDB in the future.

Dr Walid, Director IsDB said that IsDB Group remains committed to supporting Pakistan in its journey towards recovery and prosperity through climate-resilient infrastructure.