Pakistan, IsDB expand project financing

ISLAMABAD: Pakistan and the Islamic Development Bank (IsDB) exchanged the Country Engagement Framework (CEF) Document (2023-25) on Friday, outlining medium-term strategic directions and priorities for increasing project financing from $600 million to $1 billion.

Top official sources confirmed to The News that the Pakistan government was set to confer a civil award on the visiting IsDB official on March 23, 2024 (today). Additionally, Pakistan has been negotiating with the Kingdom of Saudi Arabia for another $1 billion Saudi Oil Facility (SOF) with negotiations underway between the two sides. The last SOF expired in December 2023.

An official announcement on Friday stated that a delegation from the Islamic Development Bank (IsDB), led by Dr. Walid Abdelwahab, Director of the IsDB Regional Hub Türkiye, is on a three-day visit to Pakistan from March 22-24, 2024. The delegation met with Ahad Khan Cheema, Minister for Economic Affairs, on March 22, 2024.

The minister welcomed the IsDB director, expressing gratitude for the strong and enduring partnership between the bank and Pakistan government. He acknowledged the efforts of IsDB president in mobilising international support for the 2022 floods affectees, pledging $4.2 billion.

Dr. Walid Abdelwahab assured full support for Pakistan’s development vision and policies, stressing the need for mutual collaboration and partnership to strengthen relations.

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

The project aims to construct 700,000 houses, benefiting an estimated 4.2 million people in rural areas, and supporting the creation of 75,000 water, sanitation, and hygiene (WASH) facilities.