Pakistan has signed a $1 billion loan agreement with the Asian Development Bank (ADB), marking its return to Middle Eastern financial markets after more than three years. The agreement, signed in Islamabad, will last for five years and includes both Islamic and regular (conventional) financing. According to the Ministry of Finance, this deal shows that international lenders are gaining trust in Pakistan’s economic reforms and financial plans.
Most of the loan—about 89%—is based on Islamic financing, while 11% follows regular banking methods. The ADB is also providing a guarantee to help bring in other banks. These include Dubai Islamic Bank, Standard Chartered, Abu Dhabi Bank, Sharjah Islamic Bank, Ajman Bank, and Habib Bank Limited (HBL).
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Officials said the money will help Pakistan manage its budget and improve its cash flow during tough economic times. They also noted that the ADB’s support was very important in helping Pakistan regain trust in global financial markets. One official said, “This is not just a loan—it shows the world believes in Pakistan’s economic progress.”
This agreement also marks a change in how Pakistan borrows money, with more focus on working with Middle Eastern banks and using both Islamic and regular financing options. Experts believe the deal will reduce short-term financial pressure, encourage more international support, and help Pakistan improve its foreign reserves and overall economic stability.
