Pakistan has re-entered the Middle Eastern financial markets after over three years by securing a $1 billion financing deal with the Asian Development Bank (ADB). The agreement, signed in Islamabad, includes both Islamic and conventional financing and will span five years under a multi-tranche facility.
Backed partially by ADB’s policy-based guarantee, the deal has attracted a consortium of regional and international banks including Dubai Islamic Bank, Standard Chartered, Abu Dhabi Bank, Sharjah Islamic Bank, Ajman Bank, and HBL. Nearly 89 percent of the facility consists of Shariah-compliant instruments, with the rest based on conventional financing structures.
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Finance Ministry officials stated that the funding will support Pakistan’s budgetary needs and improve liquidity at a time of macroeconomic challenges. The agreement is seen as a strong vote of confidence in Pakistan’s reform agenda and fiscal discipline.
Officials also emphasized that this move marks a strategic shift in the country’s borrowing approach, focusing more on Middle Eastern markets and Islamic finance. Analysts suggest the deal could help stabilize foreign reserves and pave the way for additional multilateral support.
