Document background
The Credit Facilities Agreement is a fundamental document in Pakistani banking and finance practice, used when a financial institution extends credit to a corporate borrower. It serves as the primary agreement documenting the lending relationship, incorporating requirements under Pakistani banking laws, including the Banking Companies Ordinance, 1962, and State Bank of Pakistan regulations. The agreement can be structured for both conventional and Islamic banking arrangements, reflecting Pakistan's dual banking system. It typically covers facility types ranging from term loans to revolving credit facilities, working capital finance, and project financing, detailing all aspects of the lending relationship including security arrangements, covenants, and compliance requirements. The document must address local regulatory requirements while potentially accommodating international banking practices, particularly in syndicated or cross-border transactions.
