Pakistan Secures $4.5B, $1B Finance; Bangladesh Gets ADB Loan

Pakistan has secured major financing agreements, including a $4.5 billion Islamic finance facility with 18 commercial banks to address the power sector's circular debt and a separate $1 billion syndicated term finance facility, primarily Islamic and partially guaranteed by the Asian Development Bank (ADB). The $4.5 billion facility aligns with Pakistan's goal to eliminate interest-based banking by 2028 and supports fiscal reforms under its IMF program. The ADB-backed $1 billion deal marks Pakistan's return to Middle Eastern financial markets and is the first supported by the bank's policy-based guarantee tied to specific reform measures. These steps are expected to ease fiscal pressures, enhance liquidity, and attract further investment. Additionally, Bangladesh has signed a $204 million loan agreement with ADB to upgrade a key trade corridor, promoting regional connectivity. Together, these initiatives highlight increased foreign support and regional cooperation for economic stability and infrastructure growth in South Asia.