ICI Pakistan approves equity investment of up to Rs 4.6 billion
March 21, 2022: As of December 2021, the Islamic Development Bank (IDB) Group had approved total financing of approximately US$14.5 billion for 412 projects in Pakistan, of which 372 are completed and 40 are ongoing active projects.
Of the total, the IDB financed $2.7 billion, while $274.9 million was approved by the private sector development arm of the IDB Group, the Islamic Corporation for Private Sector Development ( ICD), $6.7 billion in trade transactions by the IDB Group’s international trade finance arm, International Islamic Trade Finance Corporation (ITFC), and $4.9 billion was financed by others IDB Group funds and operations.
In addition, the insurance arm of the IDB Group, the Islamic Corporation for Insurance of Investments and Export Credits (ICIEC), provided $5.4 billion as insured businesses and $3.7 billion dollars in new insurance commitments.
According to official documents, Pakistan joined the Jeddah-based IDB on August 12, 1974 as a founding member.
Details of financing by sector show that approximately 69.8% (approximately $10.1 billion) of total financing was made in the energy sector, 13.2% (approximately $1.9 billion) funded in the industry and mining sector, and 7.5% (about $1.1 billion). was financed in the agricultural sector.
In addition, the document adds that the IDB has provided Pakistan with COVID-19 vaccine support amounting to $72.5 million approved in December 2021, of which 85% of funding has been disbursed to date.
The IDB is the major 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 5), led to a 98% drop in polio cases and has now reached an opportunity to stop transmission of the virus.
The IDB 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 educate more of 55,000 students.
The IDB has invested in several major power projects in Pakistan, including the Mohmand Dam and Hydropower Project (US$180 million) which will generate 800MW of electricity, the Kwar Hydropower Project, the HPP Project of Neelum Jhelum, Tricon-Boston Wind and Foundation Wind project that added 2,172 megawatts (MW) of cost-effective and sustainable electricity, and installed 225 km of power transmission and distribution lines.
The IDB, based on its “National Ecosystems for SSTrC” framework, is supporting the Government of Pakistan to establish its first Center of Excellence on South-South and Triangular Cooperation (SSTrC) with a grant of USD 119,000.
The IDB Group’s international trade finance arm, ITFC, has been a strong partner for 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 next three years (e.g. US$1.5 billion on a annual).
The document adds that in 2021, the total distribution of financing by the IDB reached $1.0 billion.