Pakistani Government Set to Issue Ijara Sukuk Worth PKR 1.5 Trillion in Financial Year 2022-2023
September 12, 2022
The Government of Pakistan expects to raise PKR 1.5 trillion (USD 6.6 billion) through Ijara Sukuk against a variety of assets, primarily public sector projects in the financial year 2022-23 (FY23).
Why it Matters?
With the issuance of USD 600 million in Sukuk, Pakistan first entered the global Sukuk market in 2005 and in 2008, the domestic Sukuk programme was introduced. After almost three years, the Ministry of Finance actively brought the programme back in 2020. As a result, the government locally issued Ijarah Sukuk worth more than PKR 2.315 trillion (USD 13 billion) between April 2020 and June 2022, lowering the cost of government borrowing and expanding Shariah-compliant channels in the market. To increase the proportion of Shariah-compliant inst...