By Digital Spartans 
Pakistan has secured a $603 million financing package from the Islamic Development Bank (IDB) to support critical social protection and education initiatives aimed at improving livelihoods and expanding access to schooling for vulnerable communities.
The agreements were formally signed by Islamic Development Bank Vice President Dr. Rami Ahmed and Pakistan’s Secretary of the Economic Affairs Division, Muhammad Hameer Karim. The funding is part of broader efforts to strengthen Pakistan’s social safety nets and accelerate recovery in areas affected by poverty and natural disasters.
Under the approved package, $118.4 million has been allocated for a poverty alleviation program targeting extremely poor and flood-affected families. According to officials, the initiative will benefit more than 160,000 households across 25 districts, focusing on income support, resilience-building, and improved access to basic services. The program is expected to play a key role in helping vulnerable families rebuild their lives after repeated climate-related shocks.
A separate allocation of $10 million has been approved for an out-of-school children project in Azad Kashmir. The initiative aims to re-enroll around 60,000 children who are currently not attending school, addressing one of the most pressing challenges in the education sector. In addition to student enrollment, the program will also focus on improving teaching standards by providing training to 4,000 teachers, with the goal of ensuring quality and sustainable education outcomes.
Officials said the education-focused funding will help reduce learning gaps in marginalized and remote areas, while also strengthening institutional capacity at the local level. By combining access to education with teacher development, the project seeks to deliver long-term benefits rather than short-term fixes.
Speaking at the signing ceremony, IDB Vice President Dr. Rami Ahmed reiterated the bank’s commitment to deepening cooperation with Pakistan. He emphasized that investment in social protection and education is central to sustainable development and inclusive growth, particularly for countries facing economic and climate-related challenges.
The Economic Affairs Division welcomed the approval, noting that the IDB’s support would significantly enhance Pakistan’s efforts to reduce poverty and improve education indicators. Officials said the financing aligns with the government’s broader development priorities, including human capital development, disaster resilience, and support for underserved communities.
The latest loan package reflects continued engagement between Pakistan and the Islamic Development Bank, highlighting the role of multilateral financing in supporting social development programs and strengthening economic stability.