Dubai Islamic Bank Leads $1 Billion Shariah-Compliant Facility for Pakistan
Structured over five years and backed in part by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB), the facility represents ADB's first-ever PBG transaction for Pakistan. This innovative financing package reflects growing global interest in Shariah-compliant solutions for sovereign funding.
Nearly 89 percent of the transaction was structured as an AAOIFI-compliant Commodity Murabaha, underscoring Pakistan's strategic push to expand Islamic finance. DIB served as the Sole Islamic Global Coordinator and, along with Standard Chartered, acted as Joint Mandated Lead Arranger and Bookrunner. Regional Islamic banks including Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank also participated.
Pakistan's Finance Minister, Muhammad Aurangzeb, called the deal a vote of confidence from global markets, noting it aligns with the country's reform agenda and its pursuit of sustainable, Islamic-based funding options.
DIB Group CEO Dr. Adnan Chilwan said the transaction reflects how values-driven finance can support national development goals, enabling Pakistan to access broader Shariah-compliant liquidity pools.
The facility is seen as a pivotal step for both Pakistan's fiscal strategy and the broader growth of sovereign Islamic finance, combining regional collaboration with ethical and resilient financial structuring.
News Source: Emirates News Agency
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