Pakistan’s Federal Cabinet Approves PKR 700 Billion Domestic Sukuk Issuance

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The Pakistani federal cabinet approved a domestic Sukuk issuance valued at PKR 700 billion on Tuesday (the 31st of March 2020), with the objective of financing the nation’s increasing budget deficit and meeting growing financial needs in the wake of the Coronavirus outbreak.

Sources indicated that the budget deficit may further exacerbate given the possibility of non-materialisation of certain financing items due to a potentially extended lockdown in the country and Federal Board of Revenue’s (FBR) shortfall.

Cabinet Approval was also granted to pledge the land of Jinnah International Airport Karachi as a guarantee to launch the Islamic denominated Sukuk bond. Cabinet ap...