Pakistan on Wednesday signed $1 billion financing for a five-year multi-tranche facility with the Asian Development Bank (ADB).<\/p>\n
\u201cThe Ministry of Finance has signed a syndicated term finance facility of $1,000 million partially guaranteed by a Policy-Based Guarantee of the ADB Programme \u2018Improved Resource Mobilisation & Utilisation Reform\u2019,\u201d according to a press release.<\/p>\n
The press release said that the Dubai Islamic Bank acted as the Sole Islamic Global Coordinator while Standard Chartered Bank was the Mandated Lead Arranger and Bookrunners.<\/p>\n
Other financiers include Abu Dhabi Islamic Bank as the Mandated Lead Arranger and Sharjah Islamic Bank, Ajman Bank and HBL as Arrangers, it added.<\/p>\n
\u201cThe facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region. This is a five-year multi-tranche facility including both Islamic and conventional tranches,\u201d it said.<\/p>\n
The finance ministry said that the Islamic facility was structured to be fully compliant with AAOIFI standards, and accounts for 89 per cent of the total financing amount, and the remaining 11pc was from conventional financing.<\/p>\n
It added, \u201cThe transaction was also the first facility supported by ADB\u2019s Policy-Based Guarantee linked to policy reform measures undertaken by an ADB Member Country, i.e Pakistan.\u201d<\/p>\n
\u201cThe ADB programme is designed to support Pakistan to build long-term fiscal resilience and stability and has supported Pakistan\u2019s re-entry into international commercial markets, with significant interest from Middle Eastern Banks,\u201d the press release read.<\/p>\n
The ministry also said that the government successfully entered the Middle Eastern financial market after nearly two and a half years, the success of which indicates \u201cthe renewed trust of the market in the fiscal stability and the overall improvement in the macroeconomic indicators of Pakistan\u201d.<\/p>\n
\u201cThis transaction also marks the beginning of a new partnership of the Government of Pakistan with Middle Eastern banks,\u201d it added.<\/p>\n
Meanwhile, Khurram Schehzad, adviser to the finance minister, posted the announcement on X. He said, \u201cPakistan secures $1bn landmark financing with ADB-backed guarantee and strong Middle Eastern banks\u2019 support.\u201d<\/p>\n
Earlier this month, the Philippines-based lender approved $800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan.<\/p>\n
ADB said in a statement that subprogramme 2 of the \u201cImproved Resource Mobilisation and Utilisation Reform Programme\u201d includes a policy-based loan of $300m, and ADB\u2019s \u201cfirst ever policy-based guarantee\u201d of up to $500m, which is expected to mobilise financing of up to $1 billion from commercial banks.<\/p>\n","protected":false},"excerpt":{"rendered":"
Pakistan on Wednesday signed $1 billion financing for a five-year multi-tranche facility with the Asian Development Bank (ADB). \u201cThe Ministry of Finance has signed a syndicated term finance facility of $1,000 million partially guaranteed by a Policy-Based Guarantee of the ADB Programme \u2018Improved Resource Mobilisation & Utilisation Reform\u2019,\u201d according to a press release. The press […]<\/p>\n","protected":false},"author":1,"featured_media":10131,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-10130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news"],"_links":{"self":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/10130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10130"}],"version-history":[{"count":1,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/10130\/revisions"}],"predecessor-version":[{"id":10132,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/10130\/revisions\/10132"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/media\/10131"}],"wp:attachment":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}