March 21, 2022: As of December 2021, the Islamic Development Bank (IsDB) Group has approved total funding of approximately US$14.5 billion for 412 projects in Pakistan, of which 372 have been completed and 40 are active projects underway.
Of the total, IsDB funded $2.7 billion while $274.9 million has been approved by the private sector development arm of the IsDB Group, Islamic Corporation for Development of Private Sector (ICD), $6.7 billion trading operations by the international trade finance arm of the IsDB Group, International Islamic Trade Finance Corporation (ITFC), and $4.9 billion has been funded by other funds and operations of the IsDB Group.
In addition, the insurance arm of the IsDB Group, 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 in new insurance liabilities.
According to official documents, Pakistan joined the Jeddah-based IsDB on August 12, 1974 as a founding member.
The sector-specific financing details show that approximately 69.8% ($10.1 billion) of the total financing has been done in the energy sector, 13.2% (about $1.9 billion) has been financed in the industrial and mining sector and 7, 5% (about $1.1 billion) amount is financed in the agricultural sector.
Further, the document added that the IsDB has provided COVID-19 vaccine support to Pakistan in the amount of US$72.5 million, approved in December 2021, of which 85% funding has been disbursed to date.
The IsDB is the largest funder 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 vaccinate 38 million children (under the age of 5), led to a 98% reduction in polio cases, and has now reached the potential to stop the transmission of viruses.
The IsDB has also promoted education in remote areas of Pakistan by supporting primary education projects in Azad Jammu and Kashmir, including the construction and operation of more than 300 schools to train and nurture more than 55,000 students.
The IsDB has invested in several major energy projects in Pakistan including Mohmand Dam and Hydropower Plant Project (US$180 million) which will generate 800 MW of electricity, Kwar Hydropower Plant project, Neelum Jhelum HPP project, Tricon-Boston Wind and Foundation Wind project which has added 2,172 Megawatts (MW) of cost-effective and renewable electricity, and the installation of 225 km of transmission and distribution lines for the power grid.
The IsDB, based on its “National Ecosystems for SSTrC” framework, is supporting the Government of Pakistan in establishing its inaugural Center of Excellence on South-South and Triangular Cooperation (SSTrC) through a US$119,000 grant.
The international trade finance arm of the IsDB Group, ITFC, has been a strong partner of Pakistan.
It signed the fourth framework agreement with the country on June 28, 2021 for $4.5 billion to support energy imports over the next three years (for example, $1.5 billion annually).
The document added that by 2021, the total funding breakdown by the IsDB had reached US$1.0 billion.
APP
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