Islamabad, June 18, 2025 – In a significant move signaling renewed investor confidence, Pakistan has successfully reentered the international financial markets by securing a $1 billion syndicated financing deal.
The facility, structured as a multi-tranche term finance arrangement, is partially backed by a Policy-Based Guarantee under the Asian Development Bank’s (ADB) “Improved Resource Mobilization & Utilization Reform” program.
According to a post shared on X (formerly Twitter) by Khurram Schehzad, Advisor to the Finance Minister, Dubai Islamic Bank served as the Sole Islamic Global Coordinator for the transaction, while Standard Chartered Bank took on the role of Mandated Lead Arranger and Bookrunner. Additional financial institutions that participated in this landmark financing deal include Abu Dhabi Islamic Bank (Mandated Lead Arranger), along with Sharjah Islamic Bank, Ajman Bank, and HBL as Arrangers.
This deal marks a milestone in Pakistan’s ongoing efforts to diversify its external financing sources and reflects the growing confidence of Middle Eastern and regional banks in the country’s economic outlook. The facility comprises both Islamic and conventional tranches, with Islamic financing making up 89% of the total amount. The Islamic tranche complies fully with AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards. The remaining 11% is sourced through conventional financing channels.
This is the first such syndicated deal supported by the ADB’s Policy-Based Guarantee that is directly linked to the implementation of key policy reforms in an ADB member state, specifically Pakistan. The ADB’s backing not only strengthened the transaction but also underscored its support for Pakistan’s broader fiscal reforms and economic stability.
The deal signals Pakistan’s reentry into international financial markets after a gap of over two years, and its successful closure reflects improved macroeconomic indicators and market sentiment. The transaction also paves the way for deeper collaboration between the Government of Pakistan and financial institutions in the Middle East, marking a fresh chapter in regional financing partnerships.