Pakistan $1 Billion Loan: 5-Year Financing Secured
- Pakistan has secured $1 billion in syndicated financing, a move reflecting international confidence despite ongoing economic pressures.
- The Ministry of Finance announced Wednesday that the Dubai Islamic Bank played a key role as the Sole Islamic Global Coordinator. Standard chartered Bank served as the Mandated...
- Other financial institutions participating include Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL, demonstrating broad support for Pakistan's economic stability and improved resource mobilization.
Pakistan just secured a $1 billion loan, demonstrating international trust amid current economic headwinds. This five-year financing agreement showcases robust support from both Islamic and conventional financial institutions, with Dubai Islamic Bank taking a key role as Sole Islamic Global Coordinator. Standard Chartered Bank also played a crucial role as Mandated Led Arranger and Book-runner. the Asian Development Bank (ADB) provided a partial guarantee, further solidifying the deal.Middle eastern banks, including Abu Dhabi Islamic Bank and Sharjah Islamic Bank, are prominently involved, assisting Pakistan’s economic stability and resource mobilization efforts. News Directory 3 brings you this critical update on Pakistan’s financial strategy. Discover what’s next for Pakistan’s economic future!
Pakistan Secures $1 Billion Financing Amid Economic Challenges
Updated June 19, 2025
Pakistan has secured $1 billion in syndicated financing, a move reflecting international confidence despite ongoing economic pressures. The five-year agreement involves both Islamic and conventional financial structures.
The Ministry of Finance announced Wednesday that the Dubai Islamic Bank played a key role as the Sole Islamic Global Coordinator. Standard chartered Bank served as the Mandated Lead Arranger and Book-runner.
Other financial institutions participating include Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL, demonstrating broad support for Pakistan’s economic stability and improved resource mobilization.
The Asian development Bank (ADB) partially guaranteed the financing through its “Improved Resource Mobilisation and Utilisation Reform” program. The Islamic portion of the facility adheres to standards set by the accounting and Auditing organisation for Islamic Financial Institutions (AAOIFI), constituting 89% of the total.
Khurram Schehzad, an advisor to the Finance Minister, highlighted the deal on X, noting the ADB-backed guarantee and the backing of Middle Eastern banks. The ADB approved an $800 million program earlier this month to enhance Pakistan’s fiscal sustainability and public financial management.
Pakistan averted a potential default in 2023-24 with assistance from the International Monetary Fund (IMF). Subsequent efforts to stabilize the economy have yielded positive results, including a $1.8 billion current account surplus in the first 11 months of the fiscal year.
What’s next
This financing aims to bolster Pakistan’s long-term fiscal resilience and encourage further engagement with international commercial markets,particularly in the Middle East.