Ministry of Finance signs $1bn, 5-year long term financing facility

June 18, 2025 (MLN): The Ministry of Finance has signed a $1 billion syndicated term finance facility, partially backed by a Policy-Based Guarantee under the Asian Development Bank’s (ADB) “Improved Resource Mobilization & Utilisation Reform” program.

Dubai Islamic Bank served as the Sole Islamic Global Coordinator for the deal, while Standard Chartered Bank acted as the Mandated Lead Arranger and Bookrunner.

Other key financiers include Abu Dhabi Islamic Bank, also as a Mandated Lead Arranger, along with Sharjah Islamic Bank, Ajman Bank, and HBL serving as Arrangers, as per the press release issued.

This five-year multi-tranche facility, comprising both Islamic and conventional tranches, is considered a landmark transaction for the Government of Pakistan, demonstrating strong support from prominent regional financiers.

The Islamic tranche, structured in full compliance with AAOIFI standards, constitutes 89% of the total financing amount, while the remaining 11% is derived from conventional sources.

Notably, the transaction marks the first-ever facility supported by ADB’s Policy-Based Guarantee linked directly to policy reform measures undertaken by a member country, namely Pakistan.

The ADB program aims to bolster Pakistan’s long-term fiscal resilience and stability, playing a pivotal role in enabling the country’s re-entry into international commercial markets, with substantial interest from Middle Eastern banks.

This transaction signifies Pakistan’s return to the Middle Eastern financial market after nearly two and a half years, highlighting renewed market confidence in the country’s fiscal stability and improvements in macroeconomic indicators.

It also marks the beginning of a new partnership between the Government of Pakistan and Middle Eastern financial institutions.