Pakistan ADB $1bn Loan: 5-Year Facility Secured
- Pakistan has finalized a $1 billion financing agreement for a five-year multi-tranche facility with the Asian Development Bank (ADB).
- The Dubai Islamic Bank served as the Sole Islamic Global Coordinator, while Standard Chartered Bank acted as Mandated Lead Arranger and Bookrunner.
- According to the finance ministry, the Islamic tranche, compliant with AAOIFI standards, constitutes 89% of the total financing.
Pakistan secured a meaningful financial boost! The nation finalized a $1 billion financing agreement with the Asian Development Bank (ADB), marking a pivotal move toward economic stability. this five-year facility,partially guaranteed by the ADB,signals strong support from Middle eastern banks,vital for Pakistan’s fiscal resilience. the agreement, supported by the “Improved Resource Mobilisation & Utilisation Reform” program, also highlights the critical role of Islamic financing, comprising the majority of the total. This deal facilitates Pakistan’s return to international markets, attracting interest and building a new partnership dynamic. news Directory 3 is on top of this story. Discover what’s next in Pakistan’s economic journey and the role this financing plays!
Pakistan secures $1 Billion ADB financing with Middle East Support
Updated June 19, 2025
Pakistan has finalized a $1 billion financing agreement for a five-year multi-tranche facility with the Asian Development Bank (ADB). The Ministry of Finance confirmed the deal, highlighting the ADB’s Policy-Based Guarantee program, “Improved Resource Mobilisation & Utilisation Reform,” as a key component.
The Dubai Islamic Bank served as the Sole Islamic Global Coordinator, while Standard Chartered Bank acted as Mandated Lead Arranger and Bookrunner. Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL also participated as arrangers.
According to the finance ministry, the Islamic tranche, compliant with AAOIFI standards, constitutes 89% of the total financing. The remaining 11% comes from conventional financing. The ministry emphasized that this is the first facility supported by ADB’s Policy-Based Guarantee linked to Pakistan’s policy reform measures.
The ADB program aims to bolster Pakistan’s long-term fiscal resilience and stability. Officials stated it has facilitated Pakistan’s return to international commercial markets, attracting notable interest from Middle Eastern banks. The government views this transaction as the start of a new partnership with financial institutions in the Middle East, signaling renewed market confidence in pakistan’s fiscal stability and macroeconomic improvements.
Earlier in June, the ADB approved an $800 million program to strengthen fiscal sustainability and improve public financial management in Pakistan. This included a $300 million policy-based loan and a $500 million policy-based guarantee, expected to mobilize up to $1 billion from commercial banks.
What’s next
The $1 billion in financing is expected to further stabilize Pakistan’s economy and foster stronger relationships with Middle Eastern financial institutions. The government aims to continue implementing reforms to maintain fiscal stability and attract further investment.