DIB Leads USD 1 Billion Islamic Finance Facility for Pakistan

Dubai Islamic Bank (DIB) has successfully arranged a USD 1 billion syndicated term finance facility for the Government of Pakistan (GoP), marking a significant transaction in regional Islamic finance. The facility, backed by leading Gulf-based Islamic lenders, is structured to support Pakistan’s financing needs under Shari’ah-compliant terms.

DIB acted as the lead arranger, overseeing syndication and arranging participation by several Islamic financial institutions within the region. The facility is likely to offer long-term funding for Pakistan's development and infrastructure needs.

Key Highlights-

• Dubai Islamic Bank leads $1B syndicated Islamic finance facility for Pakistan
• Deal supports Pakistan’s infrastructure and development under Shari’ah-compliant terms
• Gulf-based Islamic lenders participate, boosting regional sovereign finance leadership

Al Zawar Al Naqbi, Group CEO of DIB, commented on the milestone deal: “We are proud to lead this USD 1 billion facility to support Pakistan's sustainable development. This transaction highlights the strong confidence Gulf Islamic investors have in DIB’s leadership in Shari’ah-compliant financing solutions.”

The transaction reflects increased demand for Islamic syndicated finance to cover sovereign financing requirements, alongside providing Pakistan with a diversified source of funding that goes beyond conventional Western financial institutions. The facility is designed to support Pakistan's fiscal pressure-handling capacity as well as project financing in public services, infrastructure development, and economic development.

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Analysts note that the deal positions DIB as an important authority for international Islamic financing, reinforcing its role in structuring large-scale sovereign facilities in the region. The success of this financing round may unlock further opportunities for Gulf banks to support development in South Asia through Shari’ah-compliant instruments.

The facility is expected to be disbursed over the second half of 2025, once all syndicate members complete internal approvals.