By Abdul Ghani

The Islamic Development Bank (IsDB) has approved a $10 million loan-funded project to bring thousands of out-of-school children back into the education system in Azad Jammu and Kashmir (AJK), according to documents available with Wealth Pakistan.

The agreement was signed on January 19, 2026; however, the operational and financial activities have yet to begin. The project is designed to identify out-of-school children and provide them with access to formal education through improved facilities, outreach programs, and targeted enrollment campaigns.

The project is expected to strengthen institutional capacity and enhance Azad Jammu and Kashmir’s ability to enroll and retain children in schools. Once operational, the initiative is expected to contribute toward improving the literacy rate and achieving broader education development goals in the region.

Experts believe such targeted interventions are critical for Pakistan’s efforts to reduce the number of out-of-school children, which remains among the highest in the world. An estimated 216,000 children, aged 6–16 in Azad Jammu and Kashmir (AJK), remain out of school despite the region’s comparatively higher literacy rate in Pakistan.

According to the data from a survey conducted by the Benazir Income Support Program (BISP), a considerable number of school-age children are still not enrolled in formal education institutions. This represents a significant proportion of the child population in the region, with roughly one in five children missing out on schooling.

The factors contributing to the problem include poverty, limited access to schools in remote mountainous areas, and shortages of teachers and educational facilities.

Credit: INP-WealthPk