The Government of Pakistan has signed a $1 billion financial agreement for a five-year period. This deal is backed by the Asian Development Bank (ADB) and includes both Islamic and regular (conventional) financing.
As reported by Dawn, the Ministry of Finance said that the deal is partly guaranteed by ADB’s special programme, which made it easier for Pakistan to get financing from international banks.
Dubai Islamic Bank played a leading role in arranging the Islamic financing. Other banks involved include Standard Chartered, Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL.
Out of the total amount, 89% is Islamic financing, which follows Shariah rules, while 11% is regular financing. This is the first time ADB has given such a guarantee to support a country’s policy reforms.
The finance ministry said this deal shows that international banks, especially in the Middle East, have regained trust in Pakistan’s economy. It also marks Pakistan’s return to the Middle Eastern financial market after almost two and a half years.
Finance adviser Khurram Schehzad called the agreement a “landmark” moment and shared the news on social media, saying it shows strong support for Pakistan from ADB and Gulf banks.
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