Pakistan secures $1b ADB-backed loan in return to Middle East markets
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Pakistan has secured a $1 billion syndicated term finance facility, partially guaranteed by the Asian Development Bank (ADB), marking its return to Middle Eastern financial markets after more than two years, the Ministry of Finance said on Tuesday.
The facility is backed by the ADB's Policy-Based Guarantee under its 'Improved Resource Mobilization & Utilisation Reform' programme, aimed at supporting Pakistan's long-term fiscal resilience.
Dubai Islamic Bank served as the sole Islamic global coordinator, while Standard Chartered Bank acted as mandated lead arranger and bookrunner. Other participating banks include Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL.
"This landmark transaction underscores the growing confidence of leading regional financiers in Pakistan's fiscal and macroeconomic recovery," the ministry said in a statement.
The $1 billion loan spans five years and is structured in multiple tranches. Notably, 89% of the facility is based on Islamic finance principles and fully complies with AAOIFI standards. The remaining 11% consists of conventional financing.
It is also the first facility supported by ADB's Policy-Based Guarantee linked to specific policy reform measures undertaken by a member country.
The ministry noted that the deal reflects renewed trust from the international financial community in Pakistan's economic management and opens the door to deeper partnerships with Middle Eastern banks.
'The success of this transaction marks Pakistan's re-entry into international commercial markets and sets the foundation for further engagement with regional financiers,' the statement added.
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Pakistan secures $1b ADB-backed loan in return to Middle East markets
Listen to article Pakistan has secured a $1 billion syndicated term finance facility, partially guaranteed by the Asian Development Bank (ADB), marking its return to Middle Eastern financial markets after more than two years, the Ministry of Finance said on Tuesday. The facility is backed by the ADB's Policy-Based Guarantee under its 'Improved Resource Mobilization & Utilisation Reform' programme, aimed at supporting Pakistan's long-term fiscal resilience. Dubai Islamic Bank served as the sole Islamic global coordinator, while Standard Chartered Bank acted as mandated lead arranger and bookrunner. Other participating banks include Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL. "This landmark transaction underscores the growing confidence of leading regional financiers in Pakistan's fiscal and macroeconomic recovery," the ministry said in a statement. The $1 billion loan spans five years and is structured in multiple tranches. Notably, 89% of the facility is based on Islamic finance principles and fully complies with AAOIFI standards. The remaining 11% consists of conventional financing. It is also the first facility supported by ADB's Policy-Based Guarantee linked to specific policy reform measures undertaken by a member country. The ministry noted that the deal reflects renewed trust from the international financial community in Pakistan's economic management and opens the door to deeper partnerships with Middle Eastern banks. 'The success of this transaction marks Pakistan's re-entry into international commercial markets and sets the foundation for further engagement with regional financiers,' the statement added.
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