Islamabad (TDI): Pakistan has secured a $1 billion financing facility arranged by a leading bank based in Dubai, the Ministry of Finance announced on Wednesday.
The syndicated loan, which spans five years, was made possible with support from a group of international investors.
International lenders appear to be regaining trust in Pakistan’s economic path, as reflected in the latest financing deal.
For the first time, the Asian Development Bank has stepped in with a policy-based guarantee to support the arrangement, a development seen as a major shift in how global institutions view Pakistan’s financial stability.
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Notably, around 89% of the financing follows Islamic banking principles.
Officials also shared that multiple banks from the UAE took part in the arrangement, which they say will help strengthen financial ties between Pakistan and the Gulf region.
Finance Minister Muhammad Aurangzeb called the agreement a major milestone, saying it supports Pakistan’s goal of tapping into responsible and faith-based financing options.
“This agreement reflects the international community’s growing confidence in Pakistan’s economic outlook,” he said.
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“It also demonstrates our commitment to expanding Shariah-compliant financial solutions.”
According to the finance ministry, the transaction not only supports Pakistan’s immediate financing needs but also strengthens its ongoing macroeconomic stabilization efforts.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
