Dubai Islamic Bank (DIB) has successfully concluded a landmark US$1 billion syndicated term-finance facility for the Government of Pakistan, arranged in collaboration with a consortium of leading regional and international financial institutions.
This five-year facility represents a pioneering transaction, partially backed by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB). Notably, it is the first PBG of its kind provided by ADB for Pakistan.
A significant portion of the funding—around 89 percent—is structured under an AAOIFI-compliant Commodity Murabaha Islamic tranche, highlighting the rising demand for Shariah-compliant instruments and aligning with Pakistan’s goal to deepen its Islamic finance ecosystem.
DIB acted as the Sole Islamic Global Coordinator and, together with Standard Chartered, served as Joint Mandated Lead Arranger and Bookrunner. Other regional Islamic banks participating in the facility include Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank.
Commenting on the development, Mr. Muhammad Aurangzeb, Minister of Finance, Government of Pakistan, said:
“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 of DIB, added:
“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 re-introduced 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.”
