ISLAMABAD (APP) - Islamic Development Bank (IDB) will provide US $ 140 million loan to Pakistan for renovation and up-gradation of Railways and rail system in the country. A. agreement between the government of Pakistan and IDB was reached at the Banks Headquarters in Jeddah, said a message received here on Tuesday. The agreement authorizes Pakistan to purchase equipment as an agent for and on behalf of the bank and the sale thereof to the government of Pakistan for use in the countrys Railways Development project. It is the pioneer project for the phased installations of modern signaling system on the entire main rail-lines in Pakistan. The Ambassador of Pakistan in Saudi Arabia, Umar Khan A Sherzai signed the agreement on behalf of the Government of Pakistan while Dr. Ahmed Ali, President IDB, signed on behalf of the Islamic Development Bank. Speaking on the occasion, the Ambassador said that the IDB contribution in the economic development of the Islamic world was commendable. The Bank has been instrumental for gearing up progress and development in the Islamic world, he said. The Ambassador appreciated the role of the bank and the OIC for fostering Muslim unity. The President of IDB said that Pakistan was an important Muslim country and he wishes it to prosper and progress. He assured the Ambassador of all possible cooperation.