KARACHI: The Sindh Infrastructure Development Bond, which aims to raise at least $ 200 million for development and infrastructure projects, is to be launched in the province soon, it is learnt.
The sources told Customs Today that the Sindh government was committed to undertake major infrastructure projects across the province despite several serious challenges.
In a bid to arrange alternative funding for development projects, the federal government had in the recent past floated sovereign bonds. However, the Sindh has no viable alternatives, therefore, under Article 167 of the Constitution, it will launch a Sindh Infrastructure Development Bond to raise up to $ 200 million for development and infrastructure projects in Sindh, sources added.
According to sources, with excess liquidity in the Islamic Finance Markets, this is the ideal opportunity for Sindh to leverage some of its unencumbered assets and issue a Sukuk/Islamic Bond. As the first ever-provincial debt issue, the Sukuk will reduce dependence on the federal government and will set the precedent providing viable funding alternatives for the Sindh government.
Sources further added that the Islamic Bond will also be a tradable instrument creating a secondary market and encouraging greater public participation in development of Sindh.
The major development projects which require huge funding included mass transit projects (green, yellow, red and blue BRTS lines) for Karachi, dual carriage highways, bridges and solid waste management projects etc.
