Pakistan raises $1 billion through Sukuk bond

Share
ISLAMABAD – Pakistan has raised $1 billion with 7-year tenor asset-backed Sukuk bond, offering the highest ever interest rate of 7.95 percent on an Islamic bond.
The move marked re-entry of the South Asian country into the Islamic-dominated Sukuk bond market at a time when its foreign reserves have dropped by $2 billion to nearly $17 billion in the past two weeks due to debt repayments.
Finance Ministry spokesman Muzammil Aslam said that the surge in interest rates in the United States and Europe had served blows to the international debt markets since December 2021.
“So given the situation, we have got the good deal in this uncertain time,” he told Reuters.
The Ministry of Finance said the country needed to raise the loan to maintain foreign exchange reserves at their levels ahead of some major debt repayments.
Pakistan has agreed to pledge a portion of the Lahore-Islamabad Motorway (M2) to raise debt from the international market.
The external account deficit of the country is also widening due to surge in global commodity prices — in particular oil, which makes up about a third of the country’s payments.
The development comes days ahead an IMF review board is set to review Pakistan’s performance on January 29 to approve a $1 billion tranche of a $6 billion loan signed with Pakistan in 2019.
Govt to issue Sukuk bonds against Islamabad’s ... 10:52 PM | 23 Jan, 2021ISLAMABAD – The federal government has decided to place 750 acres of the F-9 Park Islamabad as a guarantee for ...
- Pakistan becomes a full member of the international olive council09:53 PM | 22 May, 2022
- Impact of Climate Change on Mango Production in Pakistan08:30 PM | 19 May, 2022
- Pakistan agriculture facing severe water shortage06:33 AM | 16 May, 2022
- Effects of severe heat wave on crops in Pakistan06:17 PM | 11 May, 2022
- What can farmers do to increase the efficiency of fertilizers?07:21 PM | 6 May, 2022
- LIVE: PTI supporters in Imran Khan's long march set police van on ...11:03 PM | 25 May, 2022
- All educational institutions to remain closed in Rawalpindi tomorrow09:28 PM | 25 May, 2022
- Another child paralyzed as Pakistan reports fourth polio case of 202208:44 PM | 25 May, 2022
- HSA, UNFPA mark Int'l day of Midwife 2022 and day to end Obstetric ...08:14 PM | 25 May, 2022
- Pakistan Army strongly condemns sentencing of Kashmiri leader Yasin ...08:01 PM | 25 May, 2022
- Amar Khan and Momal Sheikh's hilarious BTS video goes viral06:45 PM | 25 May, 2022
- ‘Pawri girl’ Dananeer Mobeen's new video goes viral02:07 PM | 25 May, 2022
- Coke Studio 14 sets new popularity records in India04:44 PM | 25 May, 2022
- Five best Pakistani YouTube channels that would make your Ramadan ...12:24 PM | 15 Apr, 2022
- Where does Pakistan stand in most powerful passport list in 2022? ...08:37 PM | 5 Apr, 2022
- International Women's Day - Pakistani women who made a mark globally!09:55 PM | 8 Mar, 2022
- ‘Hybrid regime’: Pakistan among worst nations on EIU's Democracy ...01:22 PM | 12 Feb, 2022