KARACHI: A Dubai-based bank has successfully arranged a $1 billion syndicated term-finance facility for Pakistan, the Ministry of Finance said in a statement on Wednesday.
The five-year financing arrangement has been facilitated through a consortium of international investors, reflecting growing confidence in the country’s economic reform programme.
The financing is backed by a Policy-Based Guarantee from the Asian Development Bank (ADB), marking the first such transaction by the ADB for Pakistan. The facility, structured under Islamic principles, includes an 89% share compliant with Shariah law.
According to the finance ministry, other banks based in the United Arab Emirates also partnered in the arrangement, further strengthening regional financial collaboration.
Finance Minister Muhammad Aurangzeb called the deal a significant step in the country’s efforts to secure ethical and innovative funding solutions. “This landmark financing arrangement underscores the strong confidence of regional and international institutions in Pakistan’s economic trajectory,” he said.
He added that the success in securing Shariah-compliant financing highlights Pakistan’s commitment to broadening its financial base while aligning with Islamic finance principles.
The ministry described the agreement as a reflection of international investors’ trust in Pakistan’s economy and a boost to ongoing macroeconomic stabilisation efforts.
