Pakistan has secured a $1 billion syndicated term finance facility, marking its return to Middle Eastern financial markets after more than two years. The deal is backed by a partial policy-based guarantee from the Asian Development Bank (ADB) under its “Improved Resource Mobilisation and Utilisation Reform” programme, aimed at supporting long-term fiscal reforms.
According to the Ministry of Finance, Dubai Islamic Bank acted as the Sole Islamic Global Coordinator, while Standard Chartered served as the Mandated Lead Arranger and Bookrunner. Additional financiers include Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL.
The facility spans five years and includes both Islamic and conventional tranches, with Islamic financing comprising 89% of the total amount. Structured in full compliance with AAOIFI standards, this is the first-ever ADB-supported facility tied directly to a policy reform programme.
The ADB’s policy-based guarantee has played a pivotal role in mobilizing commercial financing by reassuring regional lenders about Pakistan’s reform trajectory and fiscal outlook. The ministry said the deal is a testament to growing confidence among international financial institutions in Pakistan’s economic reforms.
Earlier this month, ADB approved an $800 million support package for Pakistan, which includes a $300 million policy-based loan and a $500 million guarantee. This is expected to help mobilize an additional $1 billion from private lenders.
The ADB-backed programme supports critical reforms in tax policy, public expenditure management, and digital governance — all essential for reducing public debt and achieving fiscal sustainability.
ADB Country Director Emma Fan commended Pakistan’s progress in stabilizing its economy and said the programme reinforces Islamabad’s commitment to continuing structural and institutional reforms.
