ISLAMABAD – The Economic Coordination Committee has approved to launch Islamic Sukuk bond amounting to Rs200 billion ($1.44 billion) for payment of circular debt, state-run Radio Pakistan said on its website on Tuesday.

The ECC meeting was chaired by Finance Minister Asad Umar in Islamabad.

The bond will be issued through the consortium of Islamic banks.

Sukuk is the Arabic name for financial certificates, also commonly referred to as “sharia compliant” bonds.

The PTI-led central government has been falling behind on payments to electricity providers and distribution companies, accumulating arrears that were threatening to seriously disrupt electricity generation in a nation still grappling with shortages.

The committee also approved to export additional five hundred thousand tonnes of wheat.