Middle Eastern banks support Pakistan's re-entry into international commercial markets

Pakistan's Ministry of Finance has signed a landmark $1 billion syndicated term finance facility, marking Pakistan’s re-entry into international commercial markets after nearly two and a half years. The facility is partially guaranteed by the Asian Development Bank (ADB) under its “Improved Resource Mobilization & Utilisation Reform” program.

The multi-tranche, five-year financing package includes both Islamic and conventional tranches, with 89% of the total amount structured in compliance with AAOIFI Islamic finance standards.

Dubai Islamic Bank acted as the Sole Islamic Global Coordinator, while Standard Chartered Bank served as Mandated Lead Arranger and Bookrunner. Other participants include Abu Dhabi Islamic Bank (Mandated Lead Arranger), and Sharjah Islamic Bank, Ajman Bank, and Habib Bank Limited (HBL) as Arrangers.

“This facility demonstrates strong support from leading regional financiers and underscores renewed trust in Pakistan’s fiscal stability and macroeconomic outlook,” the Ministry of Finance said in a statement.

This is the first facility supported by the ADB’s Policy-Based Guarantee tied to reform measures undertaken by a member country. The ADB’s backing aims to help Pakistan build long-term fiscal resilience and stability.

According to the ministry, the success of this transaction signals a significant milestone in Pakistan’s economic recovery, reaffirming investor confidence and paving the way for expanded partnerships with Middle Eastern banks.