Key Points
- Pakistan’s $1 billion Shariah-compliant syndicated financing, named IFN Pakistan Deal of the Year 2025
- The transaction also wins the Islamic Finance News (IFN) Syndicated Finance Deal of the Year 2025
- Awards conferred by Islamic Finance News, a specialised global industry publication
- The Asian Development Bank played a facilitating role in the transaction
ISLAMABAD: Pakistan has secured two major international honours at the 2025 IFN Deals of the Year Awards for a $1 billion syndicated financing transaction, in a move officials say signals renewed investor confidence in the country’s economic management.
The awards were conferred by Islamic Finance News, commonly known as IFN, a Malaysia-based specialist publication that tracks developments in the global Islamic banking and capital markets industry.
IFN is widely followed by policymakers, financial institutions and investors active in Shariah-compliant finance, and its annual Deals of the Year Awards recognise transactions considered innovative, well-structured and impactful.
According to the Finance Division, the transaction was named both the Pakistan Deal of the Year 2025 and the Syndicated Finance Deal of the Year 2025.
A syndicated financing refers to a large loan arranged by a group of banks or financial institutions rather than a single lender.
This structure enables risk-sharing among multiple participants and is typically used when funding requirements are substantial.
In Pakistan’s case, the $1 billion facility was structured to comply with Islamic, or Shariah, principles, which prohibit interest-based lending and instead rely on asset-backed, leasing or profit-sharing arrangements.
Finance Minister Senator Muhammad Aurangzeb stated the recognition reflects international confidence in Pakistan’s ability to design and execute complex Islamic financial instruments despite tight global liquidity conditions and high borrowing costs.
He described the transaction as part of a broader strategy to diversify funding sources and strengthen the country’s external buffers — a term that refers to foreign exchange reserves and other safeguards that help a country manage external shocks, including currency volatility and external debt pressures.
Pakistan has faced recurring balance-of-payments challenges in recent years, with foreign exchange reserves coming under strain and external debt repayments weighing on public finances.
With this background, securing sizeable financing from international markets, especially under Shariah-compliant structures, is seen as an effort to widen the investor base beyond conventional lenders and tap liquidity from regions such as the Gulf and Southeast Asia.
The finance minister acknowledged the role of the Asian Development Bank in facilitating the transaction, along with participating banks and legal advisers.
Multilateral development banks often help structure or partially guarantee such deals, enhancing credibility and lowering perceived risk for private investors.
Industry analysts say Islamic finance has expanded steadily over the past two decades, becoming an increasingly important segment of global capital markets.
Pakistan, which operates parallel conventional and Islamic banking systems, has been working to deepen its domestic Islamic finance ecosystem and increase its presence in international Shariah-compliant markets.
The awards ceremony is scheduled to take place in Dubai and Kuala Lumpur in April 2026, bringing together policymakers, financial institutions and investors from across the global Islamic finance community.
Officials say the dual recognition is expected to strengthen Pakistan’s standing in international Islamic capital markets at a time when the government is seeking sustainable and diversified financing avenues to support economic recovery and long-term fiscal stability.
