Pakistan’s Cabinet Takes Key Steps Towards Promoting Islamic Banking, Pledging Airports and Roads for Sukuk 

On the 22nd of June 2021, Pakistan’s Cabinet approved the summary of the Finance Ministry on the issuance of Sukuk. The Cabinet has given the green light to mortgaging Pakistan’s motorways and airports as collateral for the Sukuk.

Why it Matters?

Federal Minister for Information and Broadcasting, Fawad Chaudhry, stated that to promote the Islamic banking system, the Cabinet approved the issuance of Sukuk. This issuance of domestic Sukuk would also enable Pakistan to meet its target of 10% Shariah-compliant instruments in domestic securities by end-fiscal year 2023 (Medium-Term Debt Management Strategy for 2019/20-2022/23).

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