Dubai Islamic Bank (DIB) has successfully led the arrangement of a $1 billion syndicated term-finance facility for the Government of Pakistan, in partnership with a group of regional and international financial institutions.
This five-year financing deal features a partial guarantee through a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB), the first time such a guarantee has been used by ADB for Pakistan.
Notably, around 89% of the facility is structured as an AAOIFI-compliant Commodity Murabaha under Islamic finance principles, highlighting the rising preference for Shariah-compliant solutions and aligning with Pakistan’s broader goal of advancing Islamic finance.
The Minister of Finance, Government of Pakistan, Mr. Muhammad Aurangzeb, stated that: “This landmark financing arrangement not only underscores the strong confidence of regional and international financial institutions in Pakistan’s economic reform trajectory, but also marks an important step in expanding our access to innovative and Shariah-compliant funding solutions. We deeply value the role of partners like DIB and ADB in supporting our efforts to ensure macroeconomic stability and sustainable growth.”
Dr. Adnan Chilwan, Group Chief Executive Officer, DIB, commented: “This transaction marks a key milestone in demonstrating how Sharia-compliant financing can be scaled effectively to meet sovereign objectives while upholding partnership and prudence. DIB is delighted to have reintroduced Pakistan’s credit to the Islamic term financing market after a hiatus of over two years through an innovative structure. We are confident this will pave the way for the Government to access broader pools of Sharia-compliant liquidity in the near future.”
This Shariah-compliant facility, backed by regional and international institutions, marks a key milestone in sovereign Islamic finance. The Asian Development Bank’s guarantee has been vital in Pakistan’s return to global markets, reflecting confidence in its fiscal reforms and stability.
For Pakistan, the deal signals a strategic return to Middle Eastern capital markets after two years, boosting investor trust and demand for ethical financing.
Participating institutions see it as a chance to support sustainable growth in emerging markets and promote Islamic finance globally.
