Pakistan has raised $1 billion through a five-year syndicated facility arranged by Dubai Islamic Bank (DIB) with backing from an Asian Development Bank Policy-Based Guarantee, finalised on July 9 2025. The deal—89 percent structured as an AAOIFI-compliant Commodity Murabaha—signals Pakistan’s return to Middle-East capital markets after more than two years.
Finance Minister Muhammad Aurangzeb hailed the agreement as evidence of renewed investor confidence in Pakistan’s economic reform agenda. DIB Group CEO Dr Adnan Chilwan said the transaction demonstrates how Shariah-compliant financing can scale to meet sovereign needs and broaden access to Islamic liquidity.
While many economists view the funding as a lifeline for fiscal stability, some commentators on X questioned debt sustainability and called for accelerated structural reforms. SouthAsianDesk.com will monitor utilisation of the $1 billion financing and its role in Pakistan’s broader economic strategy.
Published in SouthAsianDesk, July 9th, 2025
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