Pakistan’s Federal Cabinet Approves Sukuk Ijara Issuance

Pakistan’s Federal Cabinet Approves Sukuk Ijara Issuance

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The Federal Cabinet of the Islamic Republic of Pakistan (Pakistan) has given its approval on the 21st of June 2022 for the issuance of Sukuk Ijara in both the domestic and foreign markets to strengthen the government's fiscal condition and advance the Islamic banking sector in the country.

Why it Matters?

Following this approval, the country is set to issue the Sukuk. The State Bank of Pakistan (SBP) will be given custody of the underlying asset supporting the offering. More details regarding the assets and other programme-specifics will be made public soon.

Details

Pakistan issued a seven-year Sukuk worth USD 1 billion in January 2022 in the international market at an interest rate of 7.95%. According to Fitch Ratings, the out...