The government of Pakistan, acting through the Ministry of Finance and Revenue, has closed a $370 million syndicated loan and Murabaha Financing Facilities (the “Facility”), Dubai’s biggest bank Emirates NBD said in a statement on Sunday.
The loan comprises a conventional and Islamic tranche, for which Emirates NBD Capital acted as the Global Coordinator.
“Amidst a challenging market backdrop due to Covid-19, the Facility represents Pakistan’s largest hybrid (Islamic and Conventional) commercial financing year this year and reiterates the strong international investor confidence in the Pakistan economy”, Emirates NBD Capital said in the statement.
Several banks from Pakistan and the United Arab Emirates (UAE) were involved in arranging this deal, including Sharjah Islamic Bank, Mashreqbank, Commercial Bank of Dubai, Allied Bank Limited Bahrain, United Bank Limited, Habib Bank UK Limited, Credit Europe Bank N.V., and Union des Banques Arabes et Francaises. Tunis International Bank was the arranger for this deal.
Pakistan’s external debt and liabilities reached an alarming level of $113.8 billion by the end of September 2020, due to the continuous borrowing from bilateral and multilateral agencies.
According to the State Bank of Pakistan (SBP), the burden of these external debts and liabilities surged by $945 million or 0.8% during the first quarter of the financial year 2020-21 (July to September). The country’s total external debt stood at $113.803 billion by 30 September 2020, as compared to $112.858 billion by 30 June 2020.
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