Pakistan Announces PKR 225 Billion Sukuk Ijarah to Finance Budget Deficit

The State Bank of Pakistan (SBP) has announced the auction of a five-year Government of Pakistan (GoP) Ijarah Sukuk to raise PKR 225 billion in the next three months for the federal government. The Sukuk will be issued against the land of Karachi’s Jinnah International Airport.

This forms a part of the PKR 700 billion that was approved by Pakistan’s Federal Cabinet’s finance the country’s budget deficit and to meet the rising financial requirements imposed by COVID-19.

According to the SBP, this Sukuk program will be conducted through three tenders, with the first auction expected to be held on the 16th of April 2020 for PKR 75 billion. This will be followed b...