Pakistan Secures $1 Billion ADB-Backed Financial Deal

In a major boost to Pakistan’s economy, the government has finalized a $1 billion financing deal backed by the Asian Development Bank (ADB), marking the country’s successful return to Middle Eastern financial markets after a 2.5-year hiatus.

Key Details of the Deal

Duration: 5-year financing arrangement
Structure:

• 89% Islamic financing (Shariah-compliant)
• 11% conventional financing
  ✔ ADB’s Role: Provided first-ever policy guarantee to facilitate the deal
  ✔ Lead Arrangers:
• Dubai Islamic Bank (Islamic tranche)
• Standard Chartered, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, HBL

Why This Deal Matters

• Restores international confidence, particularly among Gulf banks
• Largest Islamic financing package for Pakistan in recent years
• ADB’s unprecedented guarantee signals strong institutional support
• Follows another $800 million ADB program for fiscal reforms approved this month

Official Reactions

Finance Ministry:

“This agreement reflects renewed trust in Pakistan’s economy and our successful return to Middle Eastern financial markets.”

Khurram Schehzad, Financial Adviser:

“A landmark achievement demonstrating ADB and Gulf partners’ commitment to Pakistan’s stability.”

Emma Fan, ADB Country Director:

“Recognizes Pakistan’s economic progress and supports public finance reforms for sustainable development.”

Broader ADB Support

• $300 million loan + $500 million guarantee for fiscal management
• First-ever $500M policy-based guarantee to unlock $1B+ in commercial financing

Economic Implications

• Strengthens foreign exchange reserves
• Supports ongoing IMF program compliance
• Enables critical policy reforms in energy/agriculture sectors

At a Glance: