Government of Pakistan to Launch Islamic Ijarah Sukuk to Shore Up Reserves

The Government of Pakistan has decided to place 750 acres of the F-9 Park Islamabad as a guarantee for the Islamic-denominated Ijarah Sukuk at domestic and international markets, expected to raise USD 500 million to USD 1 billion. The funds will help build up reserves and provide budgetary support.

The details will be placed before the federal cabinet chaired by Prime Minister Imran Khan on the 26th of January 2021. This will be the first time that the current Pakistan Tehreek-e-Insaf (PTI) Government will launch international Sukuk instruments. The Finance Ministry added that Sukuk would also promote Islamic banking finance in Pakistan, which is a constitutional obligation.

The Government has explored all possible options to build up foreign currency reserves, after...