The Ministry of Finance has signed a $1 billion syndicated term finance facility, backed by the Asian Development Bank’s (ADB) policy-based guarantee under its Programme “Improved Resource Mobilization & Utilization Reform.”
According to an official statement by the ministry, Dubai Islamic Bank served as the sole Islamic global coordinator, while Standard Chartered Bank was the mandated lead arranger and book runner.
Additional financiers involved in the facility include Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL.
The five-year multi-tranche facility includes both Islamic and conventional tranches. The Islamic portion, which makes up 89% of the financing, is fully compliant with AAOIFI standards. The remaining 11% is sourced from conventional financing.
This transaction is a significant development for the Government of Pakistan, marking its re-entry into the Middle Eastern financial markets after nearly two and a half years. It also represents the first facility supported by ADB’s Policy-Based Guarantee, tied to the policy reforms Pakistan has implemented to enhance its fiscal resilience and stability.
The transaction is also the first facility supported by ADB’s Policy-Based Guarantee linked to policy reform measures undertaken by an ADB Member Country, i.e Pakistan.
The ADB Program is designed to support Pakistan in building long-term fiscal resilience and stability and has supported Pakistan’s re-entry into international commercial markets, with significant interest from Middle Eastern Banks.
Minister for Finance Muhammad Aurangzeb highlighted that this deal is part of broader efforts to secure approximately $2 billion in commercial borrowing this fiscal year, aiming to increase Pakistan’s reserves from the current $11-12 billion to $14 billion by the end of the fiscal year.
Advisor to the Finance Minister, Khurram Shahzad, also shared the achievement on X (formerly Twitter), describing the deal as a “landmark financing agreement” that reflects renewed confidence in Pakistan’s economic reforms and fiscal stability.
The financing facility has garnered significant support from Middle Eastern banks, signalling a positive outlook for Pakistan’s economy and the strengthening of its partnerships with regional financial institutions.
