Islamabad, July 9, 2025: Dubai Islamic Bank (DIB), the UAE’s largest Islamic bank, has successfully arranged a $1 billion syndicated term finance facility for the Government of Pakistan, marking a significant milestone in the country’s efforts to secure Shariah-compliant funding.
The financing arrangement, announced on Wednesday, was finalized in collaboration with a consortium of regional and international financial institutions. The five-year facility is partially backed by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB)—the first such guarantee ADB has extended to Pakistan, signifying strong multilateral support for the country’s economic reforms.
Structured primarily as a Shariah-compliant Commodity Murabaha, the Islamic tranche constitutes approximately 89% of the total facility, reflecting Pakistan’s strategic focus on expanding Islamic finance and the growing global demand for ethical, interest-free financial instruments.
DIB served as the sole Islamic global coordinator, and together with Standard Chartered, acted as joint mandated lead arranger and bookrunner. Other participating institutions included Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank, underscoring the strong regional support for the transaction.
“This landmark financing arrangement not only reflects the confidence of global and regional institutions in Pakistan’s economic reform trajectory, but also reinforces our commitment to securing innovative and Shariah-compliant funding solutions,” said Federal Finance Minister Muhammad Aurangzeb.
Commenting on the deal, Dr. Adnan Chilwan, Group CEO of DIB, noted:
“This transaction demonstrates how Sharia-compliant financing can be scaled effectively to serve sovereign funding needs. We’re proud to facilitate Pakistan’s return to the Islamic term financing market after more than two years through this innovative structure.”
The inclusion of ADB’s guarantee played a key role in enabling Pakistan’s re-entry into the international commercial market, signaling growing confidence in the country’s fiscal reform efforts and macroeconomic stability.
DIB emphasized that the deal marks Pakistan’s strategic re-engagement with Middle Eastern capital markets, highlighting renewed investor interest and an appetite for partnership through ethical and cost-efficient financing mechanisms.
