Pakistan Secures $1 Billion Financing Deal Amid Economic Crisis

Pakistan has secured a five-year syndicated financing facility worth USD 1 billion, marking a significant financial transaction amid its ongoing economic crisis. The Dubai Islamic Bank served as the Sole Islamic Global Coordinator, while Standard Chartered Bank acted as the Mandated Lead Arranger and Book-runner. 

Other key financiers included Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL.

According to the Ministry of Finance, the facility includes both Islamic and conventional tranches, with 89% structured in compliance with AAOIFI (Accounting and Auditing Organisation for Islamic Financial Institutions) standards and the remaining 11% through conventional financing. 

The deal is partially backed by an Asian Development Bank (ADB) policy-based guarantee under its "Improved Resource Mobilisation and Utilisation Reform" programme.

This marks Pakistan's first re-entry into the Middle Eastern financial markets in nearly two and a half years, reflecting renewed confidence in its fiscal stability and macroeconomic indicators. 

The facility is also the first of its kind to be supported by an ADB policy-based guarantee linked to reform measures undertaken by an ADB member country.

Earlier this month, the ADB approved an $800 million programme aimed at strengthening fiscal sustainability and public financial management in Pakistan.