PM appreciates IsDB’s initiative in support of Afghan people, pledges commitment for enhanced engagement
IsDB Group approves $14.5 bln for projects in Pakistan
ISLAMABAD, Prime Minister Imran Khan Monday underscored that Pakistan greatly valued its partnership with Islamic Development Bank (IsDB) and looked forward to continued collaboration and enhanced engagement.
The prime minister received Dr. Muhammad Sulaiman Al-Jasser, Chairman of the Islamic Development Bank (IsDB) Group, who is in Pakistan to participate in the 48th Session of the OIC Council of Foreign Ministers.
Dr. Al-Jasser briefed the prime minister on IsDB’s programs including the operationalization of the Afghanistan Humanitarian Trust Fund that was established by the Extraordinary session of the OIC-CFM held in Islamabad on 19 December last year.
The prime minister appreciated IsDB’s initiative in support of the Afghan people that were in dire need of humanitarian and economic assistance.
The prime minister recognized IsDB’s longstanding and trusted partnership with Pakistan and its support in diverse sectors such as energy, finance, transportation, education and health.
He also appreciated IsDB’s support to Pakistan for the procurement of COVID-19 vaccines which greatly contributed to National vaccination campaign for reach out to the unvaccinated eligible population.
As of December 2021, the Islamic Development Bank (IsDB) Group has approved total financing of about US$ 14.5 billion for 412 projects in Pakistan out of which 372 are completed and 40 are active ongoing projects.
Out of the total, IsDB financed $ 2.7 billion, while $ 274.9 million have been approved by IsDB Group’s private sector development arm, Islamic Corporation for Development of Private Sector (ICD), $ 6.7 billion trade operations by IsDB Group’s international trade finance arm, International Islamic Trade Finance Corporation (ITFC), and $ 4.9 billion have been financed by other IsDB Group funds and operations.
In addition, IsDB Group’s insurance arm, The Islamic Corporation for Insurance of Investment and Export Credit (ICIEC), has provided US$ 5.4 billion as business insured and US$3.7 billion as new insurance commitments.
According to official documents, Pakistan joined the Jeddah based IsDB on August 12, 1974 as a founding member.
The sector wise financing details show that about 69.8% ($10.1 billion) of total financing has been made in energy sector, 13.2% (about $1.9 billion) amount has been financed in industry and mining sector, and 7.5% (about $1.1 billion) amount has been financed in agriculture sector.
Further, the document added that the IsDB has provided COVID-19 Vaccine Support to Pakistan amounting to US$ 72.5 million
approved in December 2021, out of which 85% funding has been disbursed to date.
The IsDB is the largest financier of the Polio Eradication program in Pakistan. It has provided $ 487 million since 2012 in partnership with the Gates Foundation and the Lives and Livelihoods Fund (LLF).
This program has helped to vaccinate 38 million children (under 5), resulted in a 98% decline in polio cases, and has currently reached an opportunity to stop virus transmission.
The IsDB has also promoted education in remote areas of Pakistan by supporting basic education projects in Azad Jammu and Kashmir, including the construction and operationalization of over 300 schools to educate and nurture more than 55,000 students.
The IsDB has been investing in several major energy projects in Pakistan including Mohmand Dam and Hydropower Plant Project (US$ 180 million) that will generate 800 MW of electricity, Kwar Hydropower Plant project, Neelum Jhelum HPP project, Tricon-Boston Wind, and Foundation Wind project that have added 2,172 Megawatt (MW) of cost effective and sustainable electricity, and installation of 225 km of power transmission and distribution lines.
President IsDB Dr. Muhammad Al Jasser, who is currently on a visit to Pakistan, witnessed the signing of three agreements on Monday amounting to $180 million to finance the 800 MW Mohmand Dam Hydropower Project here.
The IsDB, based on its “National Ecosystems for SSTrC” framework, is supporting the government of Pakistan to establish its inaugural Center of Excellence on South-South and Triangular Cooperation (SSTrC) through a grant of US$ 119,000.
The IsDB Group’s international trade financing arm, ITFC, has been a strong partner to Pakistan.
It signed the 4th framework agreement with the country, on June 28, 2021, for US$ 4.5 billion to support energy imports over the coming three years (e.g. US$ 1.5 billion on a yearly basis).
The document added that in 2021, the total distribution of financing by the IsDB had reached to US$ 1.0 billion.