ISLAMABAD: Pakistan is all set to issue sukuk bonds in April 2024 after completing the process by May.
Sources in the Ministry of Finance said Pakistan was not confronted with any major issues in making external payments until April 2024.
The sources stated the plan to issue the sukuk bonds was postponed for the time being and officials would restart the exercise in April 2024 and complete it by May.
By April 2024, Pakistan would have received the remaining two installments from the IMF, the sources said, adding that by receiving the two installments, the country would have fostered its global ranking.
They said after the improvement in the ranking the country’s interest rate would lower to a significant level. This way the SBP would be able to issue the sukuk bonds on low rate of interest, the sources said.
Sukuk is an Islamic financial instrument similar to bonds in the Western financial system. The State Bank of Pakistan (SBP) issues the bonds and financial institutions and corporate sector interested in investing buy these.
Governments across the globe use such instruments to overcome the budget deficit and meet the cost of other projects.
